This book explores the relationship between intellectual property and the Indian tax regime. Emphasis on this relationship is laid by mapping intellectual Property with various forms of taxation Different types of taxation, namely, customs law; sale tax, services tax, central excise and income tax have been dealt with to give an overall perspective of the subject matter.
Implicit in a conceptual approach is that each article is independent with empirical literature focused on each type of taxation, which includes Aspects of tax incidence in respect of intellectual property. From other perspectives, this book does not attempt to be comprehensive. Nevertheless, it covers a wide canvas, and seeks to go into enough depth on the specific matters it addresses in order to provide significant Elucidation. This book is not, therefore, a comprehensive practice guide on either intellectual property or taxation, but a pragmatic approach to de-mystify a subject that is intricate in its coalescence, which to the best of our knowledge is novel in the Indian context.
The book while addressing intellectual property taxation covers both General and special tax principles governing different forms of taxation Prevalent in India. The book comprises seven articles, each of which addresses different taxation. Each article is authored in a manner to provide the general provisions vis-a-vis their implications on intellectual property with excerpts of important cases and intellectual property with excerpts of important cases and administrative pronouncements setting out the main aspects of domestic taxation of intellectual property.
The first article titled “Intellectual property & Taxation” authored by Sudhir Ravindran deals with tax issues relating to intellectual property. The contents of the article provide a general guide to the overall subject Matter of intellectual property in relation with various tax issues that are currently prevalent in India.it also explain various tax treatments and Tax incentives in accordance with different types of taxation. The article Deals with types of intellectual property transactions which may give rise to different tax obligations. The increasing challenge is to appropriately identify the intellectual property elements in a transaction to be able to Value it for both tax and accounting purposes, finally, the article explains In detail the daunting task of the intellectual property and tax professionals To cop up with various changing rules of tax and intellectual property Systems.
The second article titled” Intellectual Property And Income Tax” has been authored by GN Gopalrathnam, and details facts regarding intellectual property and income tax. The author has touched upon the crucial aspects of intellectual property rights, and the implication of income tax issues upon such property. Touching upon the accounting treatment of intellectual property, the author has highlighted its recognition as a capital asset, which allows for the income tax act to provide for deductions and depreciation in the Indian context.
The third article titled “Intellectual property And sales Tax” which is authored by N Sriprakash, explains the jurisprudential and constitutional implications of imposing sales tax on transfer of intellectual property. The article also briefly covers the historical background of the sale of Goods Act 1930, and the relevance of said Act on various intellectual Property transactions. The question regarding the taxability or otherwise of transfer of intangibles under the various local sales tax Acts has been considered, highlighting that it is open to the states to tax outright transfers of intangibles like licences, trademarks, patents, etc. The article also gives explanations about the restrictions on power of taxation and the difficulties which could arise in the application of the central Act. This article is also backed up with reference to various case laws, which comprehensively explains the emerging issues relating to intellectual property.
The succeeding article on “Intellectual property And Service Tax” is authored by SA Saravana Kumaran, which throws light on the introduction of the levy of service tax on intellectual property services. The article analyses the situations pertaining to introduction services on intellectual property services, and liability of paying service tax top that extent. The article also deals with imposition of service tax on export of intellectual property services, and the value of taxable services. The article is well supported by various definitions, case laws, and government notifications.
“Intellectual property & customs Law”, the next article, is co-authored by Sudhir Ravindran and SA Chenthil Kumaran, and details the impact of customs law regulations on intellectual property like patents, trademark, copyright, etc, used while importing goods. This article deals with the relationship between custom law and intellectual property by examining the Indian customs laws and regulations. This article also details various valuation methods based on which custom duty is levied, and case laws which clarify the imposition of customs duty on various forms of intellectual property.
The next article titled “Intellectual Property And Central Excise” , co-Authored by krupa Venkatesh and SA Saravana Kumaran, deals with Valuation of excisable goods and levy of excise on goods manufactured in relation to intellectual property . The basis of assessment and valuation of intellectual property for the purpose of excise duty is effectively addressed. The article also details the payment of royalty for use of trademarks, and Assessment made in relation to royalty amount paid. This article is also supported by various case laws in order to explain the impact of excise duty on intellectual property.
The last article is titled “intellectual property And Stamp Duty”, and is authored by Sudhir Ravindran. Commercialization of intellectual property is strongly influenced by assignment and transmission .These in turn are influenced by the stamp duty payable on the actual consideration of the conveyance. The article addresses the implication of stamp duty on various intellectual property documents and instruments which purport transfer, like that of licenses, assignment, and sales.