« Top Headlines » Open DEMAT Account in 24 hrs  ITR Filing: 6 Ways to Get Exemption on Income Tax  Income Tax Return Filing: 10 Mistakes To Avoid When Filing ITR For AY 2024-25  Old vs New Tax Regime: Who should move to the New Tax Regime from the old one?  Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals «  Cost Inflation Index grows five-fold in 25 years... Disallowance and DTAAs... » Qualcomm Indian arm pays Rs 1 cr service tax September, 23rd 2006 Confusion over entities liable to pay levy on royalty. Qualcomm India Pvt Ltd (QIPL), the Indian arm of the US-headquartered CDMA patent-holder Qualcomm Inc, has paid over Rs 1 crore as service tax under business auxiliary services. The payment comes following a notice that was sent to the company's Mumbai office by the Service Tax Department. According to a service tax official, QIPL has, in its declaration to the department, profiled itself as a "separately-registered independent company" attending only to the customer and marketing-related services of the patent-holding company. "QIPL began operations only a couple of years ago. We were trying to claim service tax on royalty collected. Now that they are disassociating themselves from Qualcomm Inc, the onus to pay service tax on royalty falls on companies accepting the technology," another official said. As per rules, the patent holder has to pay a certain percentage of money as service tax on royalties collected. If the patent holder (in the case of a foreign company) has offices/branches in India, the patent holding company has to pay service tax on royalty collected. If the patent holder is a foreign company or foreign national, but with no offices or branches in India, the recipient Indian company (user of the patented product) has to pay service tax on royalty paid. The department had also approached several Indian telecom companies, including Reliance Infocomm, Tata Teleservices and MTNL, in their capacities as clients of Qualcomm. "Barring Tata Teleservices, none of them have given us sufficient details to go ahead in our investigation. Tata Tele is said to have remitted a substantial sum of money with Qualcomm for accepting their technology. But another major player has said that they have not paid `any significant sum of money' to Qualcomm," said a senior officer. Team reallocated Meanwhile the investigation team handling this case has been disbanded and re-allocated to other tasks in the department. "Investigation into this case will not stop here, we will take serious note of tax evasions," said Mr Satyendra Jeet Singh, Mumbai's Commissioner of Service Tax. Shailesh Menon