• To start E-Book selling business

I wish to start e-book selling business from Bangalore. I need some clarification on below points:
1. Shall I pay sales tax to Karnataka Government for selling e-books ?
2. Shall I register this business with any  govt. Authorities ?

Please advice me..
Asked 1 year ago in Business Law from Bangalore, Karnataka
1) the E-Commerce Company sells goods directly to customer. In this case Sales Tax is charged on sale of goods.in Karnataka 

2)Business Registration as Proprietorship/Partnership/LLP/Pvt Ltd/One Person Online Startup Registration

3) Need Tax Registration like Service Tax/VAT. 

4) Need Legal Contracts for MOU

5)Need Income Tax Filing/ROC Filings-
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
5.0 on 5.0
1. To start selling e-books, you do not need to take any permissions if you are selling the same to Indians only. All you have to do is start your website and create a current bank account which is as good as a proprietorship concern. Your domain name needs to be registered.

2. If you plan to sell e-books to people outside India, a PayPal account will help. Depending on what you are selling,
you may need to get an Import Export Code made. 

3. Online Payment Gateway should be RBI approved.

4.  Get a TAN (Tax Account Number) for income taxes from Income Tax Department’s Assessing Office.

5. You should register for sales tax and vat.  
Ashish Davessar
Advocate, Jaipur
18061 Answers
447 Consultations
5.0 on 5.0
According to the constitution, Every entity which is involved in selling/reselling  of physical or virtual goods/materials, which results into generating income for the seller/Association, needs to get TIN.
Any e-commerce business which wants to accept online payments, needs to be a registered company. So as to be able to integrate an authorized payment gateway on the website.
You can register your ecommerce business under sole proprietorship at your nearest local municipal corporation office. You need to submit the Shops and Establishment Form to complete your registration. Along with it, you are needed to submit an undertaking.
You don’t need a separate PAN for your business for taxation purposes. Your personal PAN will serve the purpose. And when filing Income Tax returns, you will have to file returns in your personal name.
Service tax is applicable only if you’re selling a service to your customers. And similarly if you are selling goods, VAT, Excise and/or Sales Tax are applicable. But all these taxes come into play once you’ve crossed an annual turnover of 10 lacs. You may also need to consider Professional Tax, if you’re employing people.
 The following link provides some good insight into the Shops and Establishments Act in Karnataka.

When do I need to apply for a Shops and Establishments Registration for my business in Karnataka?
T Kalaiselvan
Advocate, Vellore
13945 Answers
127 Consultations
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1. If you sell directly to the individuals from Karnataka, then you shall have to pay the sales tax to the Govt. of Karnataka,

2. You shall have to have a offline business address and you shall have to register your Company/Firm in the same way  a  off line book selling firm is required to do  before the sales tax, I.Tax, shop and establishment department etc.
Krishna Kishore Ganguly
Advocate, Kolkata
12077 Answers
228 Consultations
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1) if books are exempted from tax e books would also be exempted from sales tax 

2) you can seek necessary clarification from sales tax authorities in Karnataka 
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
5.0 on 5.0
The law regarding the e commerce has been clearly defined in my previous reply, you may go through it once again which answers your subsequent question too. 
The question is not about the exemption of the products intended to be sold, it is about the tax payable through e commerce/business and turnover exceeding rs. 10 Lakhs. 
T Kalaiselvan
Advocate, Vellore
13945 Answers
127 Consultations
5.0 on 5.0
1. E-Books are books digitally written,

2. In absence of any special mention about digitally written e-books, theyhave to be considered as books exempted from from payment of sale tax.
Krishna Kishore Ganguly
Advocate, Kolkata
12077 Answers
228 Consultations
5.0 on 5.0
E-books is covered within the definition of 'books'.
Ashish Davessar
Advocate, Jaipur
18061 Answers
447 Consultations
5.0 on 5.0

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