Tax implications

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This query is : Resolved

vasudev Murthy (Querist)

19 March 2013 Dear Experts,
We are Planning to Launch a informative CD for Students which will felicitate them in making themselves Job ready.
For this we would like to bundle some services like Free resume writing and other host of services.

We wanted to sell this as Service only ...Which model is good in terms of lesser tax out go and being tax compliant?

Selling as a Service or selling as a Product ( CD Software)

Please help us deciding our Business model

CA Parul Saxena

CA Parul Saxena (Expert)

19 March 2013 If you would sell as service then service tax registration is required if turnover exceeds Rs.900000/- and if it exceeds 1000000/-p.a. then Service tax to be paid @12.36%.....
If you would sell as a product then Vat registration is required in which the sale of product would be taxable @ 1%,4% or 12.5% as the case may be.....
In my opinion this would be termed as Sale of service...lets wait for the other's opinion....

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