Manish provides you the following information: Particulars ₹ Royalty for providing technical know-how for manufacture of products 25,00,000 Royalty received for permanent transfer of trade mark 20,00,000 Annual royalty f

Computation of Value of taxable services and service tax liability Sr. No. Particular Amount (in ₹) 1. Royalty for providing technical know-how for manufacture of products - taxable 25,00,000 2. Royalty received for permanent transfer of trade mark (Not taxable as it amounts to sale of I.P.R.) - 3. Royalty from authorship of books (Copyright relating to original literary work is exempt from service tax - Mega Exemption Notification No. 25/2012-ST) - 4. Royalty received for temporary transfer of patent registered outside India - liable to Service tax 3,00,000 5. Royalty received from music company for allowing recording of song composed by Manish for further distribution (Exempt - Mega Exemption Notification No. 25/2012-ST) - A Total value of taxable services 28,00,000 B Service Tax Liability (₹28,00,000 x 14%) 3,92,000 C Less: Research and Development Cess paid on import of technology (the amount of Research and development cess paid shall be allowed as a deduction from the service tax payable on the taxable service involving the import of technology) (50,000) D Net Services Tax Liability 3,42,000