Software Sales through website- Business or Profession

[Shan S]

Selling Software through website and selling platforms will come under 44AD or 44ADA?

Small programs which are paid by users in the website and also in the selling platforms too

Does it come under business or profession? what is other professional service in Business Code 44ad is for?

 

[Sadanand Bulbule]

In my understanding, creating software products and selling them repeatedly online amounts to "business" covered under Section 44AD of the IT Act,1961.

However, writing code as per client requirement or giving technical consultation is a "profession" covered under Section 44ADA of the IT Act.

Now you have to double check the facts and determine the relevant provision that suits them.

[TANAY GHILDIYAL]

I fully agree with the views of Mr. Bulbule Ji. 

AI Summary

Classification of software sales as business or profession determines applicability of presumptive taxation and depends on product v. bespoke service. Repeated sale of self contained software products via a website or platforms is characterised as business and aligns with the presumptive taxation mechanism under Section 44AD, whereas bespoke software development or technical consultancy performed for clients is characterised as a profession and falls within presumptive professional taxation under Section 44ADA; the correct classification depends on factual circumstances.