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Selling Customized Website Template Online

Abhishek (Web Designer) (35 Points)

13 November 2010

I am a Web Designer. I design customized Joomla CMS's (Content Management Software) Template/Themes and sell them online through my own website. The payments are received through PayPal. I have already Proprietorship Business Trade License and a Current Bank Account. The money from PayPal are withdrawn directly to my Current Bank Account through NEFT.

My customers are located through out the world and my this year sell volume is going to be around24 Lacs.

I have applied for IEC code. But I am not registered to Sales Tax, Service Tax etc.

Last year my business volume was small (around8 Lacs) and I paid income tax and also submitted IT return.

Do I need to fulfill any other statutory requirement to run my business?

Please Help!

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5 Replies

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 13 November 2010

Taxable service but export when in CFE wouldbe excluded.

Abhishek (Web Designer) (35 Points)
Replied 15 November 2010

Originally posted by : Madhukar N Hiregange
	Taxable service but export when in CFE wouldbe excluded.

I couldn't understand you properly. I am not from finance background.

What do you mean by "CFE wouldbe excluded"

Please explain.

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 18 November 2010

It Appears that you are providing Information Software services to your clients all over the world.

The above service is taxable under Service TAx.

But the portion of services provided by you to the foreign parties , it would be treated as export of service and exports are exempt from service tax.

But for the portion of the services rendered to indian customers and the total turnover reaches above 10 lacs . you will have to pay service tax .

Regards

Jeevesh Mehta

1 Like

Abhishek (Web Designer) (35 Points)
Replied 18 November 2010

Originally posted by : Jeevesh
	It Appears that you are providing Information Software services to your clients all over the world. The above service is taxable under Service TAx. But the portion of services provided by you to the foreign parties , it would be treated as export of service and exports are exempt from service tax. But for the portion of the services rendered to indian customers and the total turnover reaches above 10 lacs . you will have to pay service tax . Regards Jeevesh Mehta