Royalty on Sand, murum etc.
Maheshkumar Sharma
(Querist) 05 August 2011
This query is : Resolved
Hello all,
In maharashtra one have to pay royalty in excavation and use of natural resources like sand, mumrum,etc.
Can anyone tell me with reference of Legal provisions, whether Royalty is a Tax or what?
prabhakar singh
(Expert) 05 August 2011
Royalty is a payment made to an other party under which an
agreement has been signed between two parites on a mutal
agreement. The Royalty will be paid on the agreed value.
Even if the agreed value is not achieved then the party has
to pay the amount to the other. If it exceeds then the
amount has to be paid for the actual value.
HENCE ROYALTY IS INCOME TAXABLE IN HANDS OF ITS RECIPIENT AND NOT TAX IT SELF.
Maheshkumar Sharma
(Querist) 05 August 2011
ok. that is true.
but, i am asking about Royalty paid for the excavation of material from soil, land, etc.
i am asking the status of that Royalty - whether it is Tax levied by Panchayat, State govt. or duty, cess,etc ?
soumitra basu
(Expert) 05 August 2011
The State Government is the owner of all land within the state. For excavation of material from soil, land etc the lessee has to pay rent to the landlord (State Government). It is a duty and includes cess also.
Maheshkumar Sharma
(Querist) 05 August 2011
thanx a lot sir.
Is there any legal enactment or Law for that? Pl. specify the name for Maharashtra State where it is written that it is Tax or duty, or cess.
