Sell source code directly from blog through email: what taxes are applicable?

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  1. Gururaj P Kharvi

    Gururaj P Kharvi New Member

    It will be useful. Thank you so much
     
    ZED likes this.
  2. Karan Batra

    Karan Batra Well-Known Member

    1. You are allowed to sell source code. It is 100% legal
    2. This would be considered as a service. Service Tax not applicable if annual sales less than Rs. 10 Lakhs
    3. Only Income Tax would be applicable as per Slab Rates
    4. You can sell this on your individual name. No need to form a company
    In case of any further clarifications, feel free to ask
     
    Gururaj P Kharvi likes this.
  3. Gururaj P Kharvi

    Gururaj P Kharvi New Member

    Sir, when should i pay income tax(minimum amount)?
     
  4. ZED

    ZED Well-Known Member

    From F.Y 2016-17, you can opt S.44ADA and 50% of your gross receipt from business shall be deemed to be your income from business and you will have to pay tax on that before 15th Match.
     
  5. Gururaj P Kharvi

    Gururaj P Kharvi New Member

    Sir, if i'm getting annual income of some 2 lakh then should i pay income tax?
     
  6. Gururaj P Kharvi

    Gururaj P Kharvi New Member

    Sir, May I Know, what should i take care of before selling source code?
     
  7. ZED

    ZED Well-Known Member

    You are not liable to pay any income tax till 2.5 Lakhs, after that you can claim deduction under chapter VI A [Including the most famous S.80C] for upto 1.5 Lakhs.
     
    Gururaj P Kharvi likes this.
  8. ZED

    ZED Well-Known Member

    As I mentioned earlier;
    • Wherever possible obtain PAN.
    • Prefer all the transaction to be through bank/ NEFT or other electronic mode by which a proper record can be maintained.
    • Before selling, always make an agreement specifying the amount of consideration and right and liabilities of each parties
    • Further, add a clause in the agreement that all the taxes/duties/charges/cess or any other sum payable to the government shall be borne by the customer/buyer.
    • A clause that all the dispute shall be restricted to jurisdiction of X Court (where X is your High court of state)
    • Electronic trading of goods and provisioning of service is valid as per Information & Technology Act. There are many many people including companies who transact like this.
     
    Gururaj P Kharvi likes this.
  9. Gururaj P Kharvi

    Gururaj P Kharvi New Member

    Sir, I already got PAN card.

    You specified something called agreement. I hope it is terms and condition in my web page and i really don't know what else to be included in terms. If you don't mind, may i know what are other factors to be included and i din't get your last point "Electronic trading of goods..."

    It will be very helpful if you provide me some text file. Thank you
     
  10. Gururaj P Kharvi

    Gururaj P Kharvi New Member

    Is there any copyright license require to sell source code?
     
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