I am starting a ecommerce website where I'll be selling game activation codes/keys to buyer. As soon as buyer makes payment he'll receive an email with the key. I'll be selling this to customers globally. I want to know what are the mandatory things I'll need to do to do this business legally. What all taxes do I need to file? I am not selling any product which will be shipped. I am selling virtual keys. Kindly guide. I'll be more than happy to get your service for my needs. Thanks
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
1. For doing the online business you shall have to form a proprietorship/partnership firm of PVT/Public ltd. company,
2. Select a name for your firm/company,
3. Take up a physical office (may be your home),
4. Take sale tax, VATand other shops and establishment registrations,
5. Take PA No and open Bank Account,
6. For doing all the above consult a local CA,
7. You shall have to file regulat return to appropriate departments.
I want to know a detailed answer for my question: I understand basics. I want to know what all taxes will I need to pay like VAT, etc? "7. You shall have to file regulat return to appropriate departments. " Who are these appropriate departments? I am a beginner, kindly give proper details for me to begin working on these tasks.
www.gamekeysale.com is my website.
1) you have to decide whether you would like to run ecommerce business as sole proprietorship , partnership firm or ltd company
2) To incorporate a private limited company you must approve its name, registered office address, have at least 2 directors with director identification numbers (DINs), must have a minimum authorised capital of Rs. 1 Lakh, memorandum of association (MOA) and articles of association (AOA), digital signature certificates (DSCs) wherever applicable, etc. Once these conditions and requirements are fulfilled, a certificate of incorporation is sent by post to the registered office of the newly registered company.
3) you would need to comply with income tax formalities These include obtaining permanent account number (PAN), tax deduction account number (TAN), value added tax (VAT) registration and obtaining of tax identification number (TIN), professional tax if applicable, service tax, etc.
4) Under the Information Technology Act 2000 (IT Act 2000) there are many “Due Diligence Requirements” that Banks, Internet Service Providers (ISPs), Search Engines, E-Commerce Portals, etc must fulfill.
5) further Registration of shop/establishment is mandatory within 30 days of commencement of work.
6) you must all register your trademark for your brand name .you have to submit the application for registration to any one of the offices of the Registrar of Trade Marks
7) you must also copyright contents of your website so that you can sue them for any copyright infringement
1) in 2011 India has notified rules under section 43A of It Act for data protection .
2) there are basically 2 categories of information covered under IT Act
a) personal information available with body corporate capable of identifying person
b) sensitive personal data or information like password and financial information like credit card or debit card , sexual orientation , physical mental health , medical records
3) the data protection rules provide that sensitive personal information be protected by corporate entity by having a privacy policy and to obtain consent of user for accessing his personal information .
4) further the corporate entity must give user opt out option
5) further it is necessary that website follow reasonable security practices and procedures .
6) any wrong ful disclosure of persoanl information is punishable with imprisonment of upto 3 years or fine upto 5 lakhs
7) further the user can seek compensation for wrongful disclosure of his personal information
1. You hall have to file return to the sale tax department, to the shops & establishment depatment. You shall also have to file Income Tax Return and obtain your PAN Card.
2. Commercial tax comes under state subject and the Commercial Act and Rule varies from sate to state,
3. To ascertain the exact rate of tax and the turn over limit for being exempted to get registered and submit return, you need to consult local CA,
4. As a starter you wont have to pay any tax as of now and the liability to register and pay taxes starts after achieving certain amount of turnover as specified in the commercial act of your state,
1) in India payment and settlements are governed by payment settlement system act 2007
2) The PSS Act empowers the Reserve Bank of India(“RBI”) to govern payment systems operational in the country
3) the RBI issued certain‘Directions for opening and operation of Accounts
and settlement of payments for electronic payment transactions involving intermediaries
4) RBI Directions on Intermediaries regulate the nature of accounts that intermediaries can operate i.e. internal accounts, the permitted credits and debits that can be made from such accounts and also provide for specific time limits within which funds
must be remitted to a merchant upon receipt of funds
from a customer.
5) the RBI issued a notification in February2009, mandating the use of an additional
authentication / validation system (also referred to as2nd level authentication / 3D verification) for online Card not present transactions. wherein payments are made online