Levy of service tax - Royalty paid by appellant to Government - ...

Debate Over Service Tax on Royalty Payments Under Reverse Charge Mechanism; Exemption Notification in Question.

January 15, 2024

Case Laws     Service Tax     AT

Levy of service tax - Royalty paid by appellant to Government - RCM - The department does not have a case, that the activity falls within lease and that the royalty paid is rent. This is because, if so, the liability to discharge service tax would be on the government (being the service provider). The demand raised is indeed on the basis of Sl.No.61 of the exemption notification. Para 15 of the SCN also would show that the demand has been raised on the basis that the royalty which is paid periodically is not exempted from service tax. - AT

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