CESTAT explains levy of Service tax on licence fee paid to SAP AG, Germany

SAP India Pvt. Limited Vs Commissioner of Central Excise (CESTAT Bangalore)

By the impugned orders in the above appeals, the respondent has confirmed the demand of service tax on the licence fee paid to SAP AG, Germany, for grant of non-exclusive licence to use, market and sub­license the software, third party database and third-party software to ^‘end user’ in the territory, on ^‘reverse charge basis’ under the taxable head ‘Franchise Services’ from 18.04.2006 onwards

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