Which tax for online download software license ?

Others 1112 views 1 replies

Hello,

If i am selling software of other company, which tax i should add in billing ?

i.e. I have tied up with a software company. Its product is downloadable from internet and only you have to puchase licenses. So if software license cost is $10. i will get in say $5, now i will sell this software license to customers. Should i add up any tax to it ? if yes which tax will be applied ?

note : i am just selling it and taking my profit, neither software not licenses own by me and its online digital download license.

Thanks & Regards

Hemant

Replies (1)

VAT would be applicable in your case. I hope they are something canned softwares only.. If you exceed the minimum limit fixed by your state for registration under VAT then you have to obtain a RC and start collecting tax from your customers and deposit on due dates with the VAT authorities.
 


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