Service Tax for Indian freelancers and software firms

Disclaimer :

The information provided here may be outdated or incorrect. The tax rules are revised every year in annual budgets. Please consult your CA for latest regulations and norms.

What is Service Tax

In India service tax is applicable on certain businesses/firm if its annual revenue exceeds 10 Lakh Rupees. Current rate is 10.30% (at the time of writing this article). Its not applicable where VAT is applied.

Service Tax is applicable in IT sector and on software firms and freelancers whose annual revenue exceeds the limit. The annual revenue includes both foreign and local income. So if the total of foreign revenue and local revenue exceeds the 10 Lakh limit then the firm is supposed to apply for a Service Tax number.

Service Tax only on INR revenue

However Service Tax or S.T. is to be paid only on local revenue. If a company's revenue is 5 Lakh in USD and 5 Lakh in INR then S.T. is to be paid on only the local 5 Lakh revenue. The 5 Lakh ruppe income in USD is free from S.T.

But this benefit is applicable only if the revenue was recorded as USD in the bank account. Its not applicable if some foreign individual/company send the money as INR. The best example of this would be Paypal. Paypal is used by most Indian freelancers to accept payment from foreign clients. But Paypal sends money via NEFT to bank account and the currency of deposit is INR. Hence this deposit becomes applicable for service tax. Another popular money transfer medium is Moneybookers. Moneybookers has the option to keep an account in currency USD , and if such an account requests withdrawal , the money is send via Wire Transfer in currency USD. This is shown as a USD deposit in the receiver's bank account and hence this is free from service tax.

Freelancing websites

1. Elance - Elance provides the option of wire transfer for money withdrawal. In Wire Transfer deposits are in USD and hence free from service tax. For paid membership 1 free wire transfer per month is available. Rest have charges applicable.

2. Odesk - Odesk provides Paypal , Moneybookers and NEFT transfer. NEFT transfers will be in INR hence are applicable for S.T. Depending on the annual revenue volume , its useful to choose moneybookers. So the transfer can be like this :
Odesk -> Moneybookers -> Bank Account

3. Freelancer - Freelancer.com provides Paypal , Moneybookers and Wire option. Whichever suitable should be used. Freelancer provides wire only for USD currency. It has other currency options like AUD , for which wire is not available. Wire transfer have charges.

4. Scriptlance - Provides moneybookers , neft , paypal.
Moneybookers useful.

Conclusion

So if your annual revenue is over 10 Lakh , then get your payments deposited to your bank account in USD or any foreign currency to make them service tax free. Once the deposit is made in rupee , service tax is applicable.

How to register a trademark?

If you're starting a new business or trade, a logo, name or signature is the first thing you choose to separate yourself from the rest. A "trademark" is that symbol you will use to do so. Registering a trademark is a legal process provided for under the Trade Marks Act, 1999. In this week's column, we will breakdown the process of registering your own trademark, if your business is applicable for the same.

Documents required

A soft copy of the logo in JPEG format.

TM 48 (form of authorization).

Date of first use of the mark.

Name and address of the proprietor of the mark.

Required fee.

Types of trademarks available

- Names, including your own name or surname.

- An invented word or any arbitrary dictionary word or words. It does not need to be descriptive of the character or quality of the goods/service.

- Letters or numerals or any combination.

- Symbols

- Monograms

- Combination of colours or even a single colour in combination with a word or device.

- Shape of goods or their packaging.

- Marks constituting a 3-dimensional sign.

- Sound marks when represented in conventional notation or described in words by being graphically represented.

What does the register of trademark contain?

Currently maintained in electronic form, the trademark contains the following:

- The class and goods/services in respect of which it is registered including particulars affecting the scope of registration of rights conferred or disclaimers.

- Address of the proprietors.

- Particulars of trade or other description of the proprietor.

- The convention application date (if applicable).

- Place where a trademark has been registered with the consent of proprietor of an earlier mark or earlier rights.

How to make a trademark application?

You can make an application for a trademark on Form TM-1 with the prescribed fee of Rs 2,500 at one of the five offices of the Trade Marks Registry located at Mumbai, Delhi, Kolkata, Chennai and Ahmedabad. This will depend on the place where you reside or have your main place of business.

You will need to do a pre-filing search before filing your trademark.

Once you register your trademark, you will be issued an official receipt with a TM number.

Then an examination report is filed within three months from application. You will get a response to your registration either by an affidavit, a hearing or by an interview.

Your application will be looked at to ascertain if it does not conflict with existing registered or pending trademarks. Based on this, an examination report is issued.

As you defeat objections raised by the registrar, your application is then published in the Indian Trade Marks Journal, with an endorsement stating either that it has been accepted or that it is being published before acceptance.

Once it is published, any person has three months (which can be extended to a month at the registrar's discretion) to file a notice of opposition to registration.

Acceptance or refusal of your trademark application will be considered once the opposition proceedings have been completed.

Duration of trademark

The term of registration of a trademark is 10 years. This may be renewed for a further period of 10 years on payment of the renewal fees.

Costs for trademark transactions

To file a new application there are set forms depending on the nature of your application. The forms are numbered as TM-1, TM-2, TM-3, TM-8, TM-51 etc: Rs 2,500

To file a notice of opposition to oppose an application published in the Trade Marks Journal a (FormTM-5): Rs 2,500

For Renewal of a registered trademark (Form TM-12): 5,000

Surcharge for late renewal (Form -10): Rs 3,000

Restoration of removed mark (Form TM-13): Rs 5,000

Application for rectification of a registered trademark (Form TM-26): Rs 3,000

E-filing of application

E-filing of a trademark application is a new service provided by the trademark registry office on its website. With it, you can:

- Complete an electronic application form.

- Provide the associated attachments.

- Complete necessary payment details.

What is the benefit of e-Filing?

You will immediately:

Receive a trade mark application number

Online verification to assure error-free filing and obtain your filing date

Speed up the registration process

Print the completed application data and receive fee acknowledgement

Save the data locally in your PC

Be able to recall your contact details for subsequent applications

You can also view online history and status of the applications filed by clicking "Status of Filed Application" and the online status of e-Payments.

Using the "" symbol with your trademark simply implies that you claim to be the proprietor of the trademark. There is no prohibition on the use of the symbol in India.

Contact:

Trade Marks Registry, Mumbai (head office)

Intellectual Property Bhavan, Near Antop Hill Head, Post Office, S M Road , Antop Hill, Mumbai 400037

Tel: 022-24101177, 24148251

(Jurisdiction: Maharashtra, Madhya Pradesh and Goa)

P H Kurian, controller general of patents, designs and trademarks, Bhoudhik Sampada Bhavan, Near Antop Hill Head Post Office, S M Road, Antop Hill, Mumbai-400037,

Phone: 022-24132735, Fax : 022-24123322

Website: www.ipindia.nic.in

Source: http://timesofindia.indiatimes.com/city/goa/How-to-register-a-trademark/articleshow/10408001.cms

How to Register Trademark For Your Brand in India

How many cups of coffee and scribbles on a paper did it take for you to zero-in on your brand name? A dozen, right? Would you let some Tom, Dick or Harry walk away with that name and identity? Hell no! So to your rescue is trademark registration!

As an e-commerce platform helping small as well as big brands start their own online stores, we at Zepo, frequently come across entrepreneurs asking us about how to register their brands as trademarks. Which is why, today, within the course of this blog post, we’ll take you through on how to protect your brand’s reputation, by way of registering your brand as a trade-mark.

Before we start, what exactly does trade-marking a brand name mean?

Trademark registration of a brand name means nothing but brand name registration. It basically means, “this brand name is ours! And if you dare to use it to sell your products, we can sue you!”

In India, you can trademark any of the following or even a combination of these things:

Letter, Number, Word, Phrase, Logo, Graphic, Smell, Sound Mark or a Combination of Colors

So, what is the procedure of registering a trademark?

Step 1: Search for a “crazy-enough” brand name

You get the point, don’t you? Come up with a whacky and quirky brand name, because all the generic ones are any which way taken. Before zeroing in on one name, you might want to do a quick search to make sure that no one else is already using the name. And your best bet would be to use invented or coined words, in a combination with generic words.

Step 2: Making the trademark application

Now that your name is finalized upon, fill in the trademark application i.e. Form- TM 1. The application costs INR 3500 and is a one time fee.

Along with the application, you will need to submit a couple of supporting documents:

1. A Business registration concern: Depending on what type of a registered business you have, say sole proprietorship, etc. you will need to submit an identity proof of the directors of the company and an address proof.

2. An image of your brand logo in a standard size of 9 x 5 cms

3. If applicable, proof of claim of the proposed mark being used before in another country.

Step 3: Filling the brand name registration application

There are 2 ways to file the registration – manual filing or e-filling.

In case of manual filing, you will need to personally walk down and submit the application for registration to any one of the offices of the Registrar of Trade Marks located in Mumbai, Delhi, Kolkata, Chennai and Ahmedabad. After which you receive the acknowledgement of the application and the receipt, usually within 15-20 days of the filing.

But in e-filing system, the acknowledgement of the application is issued immediately.

And after you receive the acknowledgement, you can start using the (TM) symbol next to the brand name!

Step 4: Examining the brand name registration application

After receiving the application, the Registrar checks whether the brand name complies with the law and does not conflict or dispute with other existing registered or pending brands. That’s why we said, quirky brand name, people!

Step 5: Publication in the Indian Trade Mark Journals

After examination, the logo or brand name is published in the Indian Trade Mark Journal. If no one raises an opposition within 3 months i.e. 90 days or in some cases 120 days, from the date of publication, the brand name proceeds to acceptance.

Step 6: Issuance of the trademark registration certificate

If no one raises any opposition, within the stipulated 90 days period, the Registrar accepts the trademark application! Woohoo! And issues a Certificate of Registration under the seal of Trademark Registry.

You may now be allowed to use the registered trademark symbol (®) next to your brand name, once the certificate has been issued.

TrademarkThe whole process of registration of a brand name usually takes anything between 15-18 months. The trademark once accepted, is valid for a period of 10 years from the date of issuance of the Certificate of Registration. After the end of 10 years, the trademark will need to be renewed.

There there! We can understand if this sounds a little too over-whelming. In which case, just call up a lawyer.  The lawyer will be able to help you wade through all this legal jargon.

Although the process of registering a trademark is lengthy and a little heavy on the pocket, it is definitely worth the investment of legally protecting your brand.

However, if you are just starting out, investing in a trademark may not be absolutely essential. What matters most is creating awesome products and putting in all the time and effort into building your brand, from ground up. But, there still is another cheaper alternative to lend you lawful protection against being copied – an unregistered trademark. Do ask your lawyer about it!

Source: http://www.zepo.in/blog/2013/08/31/guide-how-to-register-trademark-for-your-brand-in/