What is the international tax liability for an internet based seller of software products?

Question

We are an Indian company and we intend to sell our software product over internet in different countries. The product is downloadable from internet only, it is not shipped physically. Do we have to worry about tax laws in these countries.

Answer 1

You're liable to pay tax primarily in your own country since you're a legal resident there. As long as you don't have physical offices in a foreign country, I doubt if you'd be taxable. It's better if you contact a CA / CPA on this as he/she should be able to give you more insights and any documents you need submit to offshore payment processing firms. I am however aware of some sales tax laws that were recently brought in for online sales in NY city.