-
Jan 23, 2015
-
The Tata brand is now a commodity
A brand is now a commodity. At least that’s the essence of a Bombay High Court ruling in the case of Tata Sons.The court has upheld the Tax Department’s decision to collect sales tax from the Tatas for the royalty it charges from Group subsidiaries for using the Tata brand name.The group firms pay 0.25 per cent of their revenues for using the Tata brand name. TCS, for example, paid Rs. 118 crore as brand fees to Tata Sons in 2013-14. The court has ruled that the company is liable to pay sales tax on brand assignment to Group companies from 1998-99 onwards. This could lead to an outflow of Rs. 300 crore, according to one industry estimate.
Source -
http://www.thehindubusinessline.com
|