I have some legal and taxation related questions.
A1. As an author here on themeforest, Am I a service provider ? [Yes / No]
A2. And so I need to pay service tax to indian govt. Am I true? [Yes/No]
B. As an author here on themeforest, Am I a product seller ? [Yes / No]
A2. Ans so I need to pay VAT to my state govt. and CST to indian govt. Am I true? [Yes/No]
I meet local CA, they can’t clear on here item selling is a ‘SALE’ or ‘EXPORT OF SERVICE’ thru themeforest author T&C and regular and extended licenses.
They gave me the Supreme Court judgment Apex Court in Bharat Sanchar Nigam Ltd., v. Union of India and others ( http://indiankanoon.org/doc/597256/) link.
So, if the right to use is actually passed on to the buyer => then VAT
if right to use is not passed on => then Service Tax.
As a result they said ‘The Dominant intention here is that your item is for 1 client , and therefore is like a Deemed Sales’. and I need to pay VAT to my state govt. and CST to indian govt.
CASE 2: Supreme Court ISODA case and (http://taxguru.in/service-tax/service-tax-vat-jargon-softwares-software-licensing-simplified.html)
FURTHER, SINCE WHAT IS SALES AS PER ENVATO IS QUESTIONABLE , YOU CAN OPT TO MAINTAIN BOOKS & OTHER COMPLIANCE’S AS PER SERVICE TAX REQUIREMENTS. IT IS MENTIONED IN THE ENVATO PDF THAT THE BUYER OF YOUR THEMES CAN NOT REPRODUCE THE THEME FOR SOMEONE ELSE, SO WE CAN TAKE THAT STATEMENT TO SHOW THE DOMINANT INTENT OF THE TRANSACTION AS A SERVICE ,( I.E LIKE I EXPLAINED , THE EULA <- AS PER I.S.O.D.A CASE )
As a result they said ‘YOU CAN OPT TO MAINTAIN BOOKS & OTHER COMPLIANCE’S AS PER SERVICE TAX REQUIREMENTS’.
I am confused, please guide me answer the above questions as an Indian Author.