One of my friends wanted to sell his website. He has got a customer and is ready to pay. But he doesn't know about legal and income tax rules regarding selling his site to a foreigner for a price around five lakhs.He asked a few questions which i have listed below.
please answer :
* Does he need to generate Invoice. * If Yes, does he need to mention Import-Export CODE (IEC) on the invoice. * Does he get benefit of D.E.P.B. * If yes, what are process. * Is selling website, called selling asset or selling product. ? * Is income, regular income or capital gain. If it is capital gain, then anyway to get exempted by investing. * Any requirement of Service Tax or Sales Tax (VAT) ? * And what about payment ? What should be the medium?
18 August 2009
Yes, He need to generate full Invoice No need to maintain IEC account I dont know do If its your busi product and else asset I think Custom duty will play here Route through banks
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Please also cross check my answer as it may wrong in few cases.
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