Legal Question in Legal Ethics in India

Sir/Madam

I have two questions:

(a) Is the online sale of e-books taxable, if yes, what tax is levied on the sale of e-books? I have learnt that there is no VAT on the sale of books, is the same true for the sale of e-books as well?

(b) I wish to engage in a business of selling writings of people like housewives, students, business persons, service class people i.e. amateur people who can write well but cannot get their work published and pay them royalty from the online sale of such e-books i source from them. What legal formalities i should complete in order to engage in this business?


Asked on 4/08/14, 7:06 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

10.04.2014

Dear Sir / Madam,

(a) Yes, the online sale of books is liable to 12.5% VAT.

(b) You will need to register your domain name and if you are running a business from an Office or shop, you will need the Shops and Establishment License. If you are keen to form a limited Company, you will need to get it registered with the Registrar of Companies.

Regards,

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Answered on 4/09/14, 7:26 pm


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