Procedures & Taxation on Royalty Income

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..... Hi Everyone, The company i work for gives out Franchisees and charges a certain percentage or a lump sum amount on its monthly Gross Sales as Royalty Share . In terms of accounting for the same i needed to have a few clarifications/answers for the following: Should we raise a Tax Invoice for the monthly Royalty Charges? If i'm not wrong the only applicable tax on this would be Service Tax .....

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..... once the total income from the same goes beyond INR 9 Lacs. The TDS will be applicable at 10% correct? Does any one know what will be the limit post which it will be applicable? INR 30,000 is what i know of. Will the Income from Royalty Share be pooled up with other income and taxed at 30% after the expenses or it has a separate Royalty Tax for this stream of revenues (I recently read an ar .....

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..... ticle that there was 10% Royalty Tax on income received for Royalty, not sure if it was over and above the standard Income Tax or one off, the link is here http://timesofindia.indiatimes.com/budget-2016/industry/Budget-2016-Lower-tax-on-patent-income-to-boost-RD/articleshow/51217476.cms) I know its a little strange question i wasn't exactly sure which section to put it into. TY in advance ev .....

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..... eryone. - Reply By Ganeshan Kalyani - The Reply = In my view service tax is not applicable if the arrangement is based on profit sharing concept. Thanks. - Procedures & Taxation on Royalty Income - Query Started By: - Saumil Dave Dated:- 18-5-2016 Other Topics - Got 1 Reply - Indian Laws - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - .....

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..... taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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