« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  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