Tax Rules

References


From 
http://entrepreneurindia.in/compute-your-taxes-in-a-sole-proprietorship-business/7739

   As per the Income Tax Act, if a persons income from business or
profession exceeds Rs.1.2 lakh or sale turnover exceeds Rs.10 lakh, he has to
maintain proper books of accounts. But from the year 2010-11, if a person
has a turnover up to Rs.60 lakh and declares minimum 8 percent of the turnover
as income, then there is no need to maintain any books of accounts for the
purpose of income tax. Further, such an assessee is *not liable* to get his
accounts audited. 

On the other hand, a sole proprietor who has turnover up to
Rs.60 lakh but declares less than 8 percent of that as income, has to maintain
his books of accounts and get them audited also.In sole proprietorship
business, the assessee is entitled to all deductions which are applicable to
the individual assessee, like deduction u/s 80C for investment in tax saving
schemes.The sole proprietor should file his income tax return in ITR-4 on or
before July 31, falling after the end of financial year in case he is not
liable to getting his accounts audited and September 30 after each financial
year if he is liable to get his accounts audited

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Sole proprietorship is a widely-used business form in India. It is the
simplest and least costly form of business organization, suitable to
entrepreneurs and SMEs. There is no formal registration of sole proprietorship
firm as such, but recently the KYC (Know Your Customer) norms of the RBI have
made it mandatory to have at least two registrations in the name of a sole
proprietorship firm. So, if the sole proprietor is involved in the
sale/purchase of goods, he has to obtain a VAT registration. Alternatively, if
he provides services, then he has to register himself with the service tax
authority.The second registration required is registration with the local
municipal registration or one under the Shops and Establishments Act as per
the rules of each state.

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What CRMs avaiable here in India?
In India many companies are offering CRM services to their clients like Sage
Software India Private Limited offering their CRM system in on-premise and
partner hosted versions, PK4 Software Technologies Pvt. Ltd is offering Impel
Hosted CRM, Net4India Ltd. is offering Microsofts Dynamics CRM in Hosted
platform. Also, some open source options are available in the market like
Sugar CRM and Zoho CRM.

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Service Tax or Sales Tax on Software Licenses ?
http://www.caclubindia.com/forum/applicability-of-service-tax-on-software-licenses-13207.asp



The Finance Act, 2008 brought some new services under the Service Tax net. One of them is Information Technology Software Service. Inclusion of a new services category â Information Technology Software Services â within the ambit of Service Tax legislation has created confusion among software firms. The levy of this new service along with other services has become effective from 16 May, 2008.Post the Notification, many feel that from 16 May, 2008, packaged software will also attract 12.36% of Service Tax. So far, packaged software attracts Value Added Tax (VAT) of 4% and 12% of excise duty.
The confusion arises as the Notification does not make a clear demarcation of whether âsoftwareâ is to be sold as goods and hence liable for sales tax (VAT) or considered as âservicesâ and liable for a Service Tax or both.
Packaged softwares are products that are sold off the shelf. Examples of the products that would fall under this are Microsoft, Autodesk, Adobe and several security software packages for computers. This will also include accounting software from Tally.
Normally Service Tax is payable to the Central Government when a service is offered, while VAT is applicable when a product is sold.
In case of softwares which are not sold off the shelf, the sale price includes free initial installation and implementation of the software. This includes some modifications or customisations to suit the customers, but without disturbing the basic structure of the software or its performance.
The copyright in the software is protected and always remains the property of the creator. What is sold is the right to use the software.
The sale is with a condition for exclusive use of the software by the customer at the exclusion of others. The sale gives absolute possession and control to the purchaser/user of the right to use the software.
The sale normally gives a warranty period and after the said period some annual maintenance charges are recovered for the services rendered, popularly called Annual Maintenance Contract (AMC).
At present the sale is subjected to tax under the Maharashtra Value Added Tax Act, 2002, (MVAT) and AMC is subjected to Service Tax.
The confusion is created due to the amendment in the Service Tax by the Finance Act, 2008 which has added âInformation Technology Software Serviceâ by way of sub-clause (zzzze) in Cl. 65(105) of the Finance Act, 1994, and further sub-clause (53a) in Cl. 65, defining the term âinformation technology software.â
The query :
Whether Service Tax is applicable to the sale of computer software ? Whether MVAT is also applicable to the same ?
Questions to be answered/verified :
To answer the query, the following crucial questions will have to be addressed :
1. Is the software âGoodsâ and covered as a âSaleâ under the MVAT Act, 2002 ?
2. Is it a service chargeable to Service Tax under Cl. 65(105)(zzzze) of the Finance Act, 1994 ?
3. Whether both the MVAT and Service Tax are applicable ?
4. What is the value chargeable to Service Tax, if applicable ?
5. Facts from the sale/licence agreements.
6. Conclusion.


Read more: http://www.taxguru.in/service-tax/whether-service-tax-is-applicable-to-the-sale-of-computer-software.html#ixzz0eNdohpHf