Actually there is no law or clarification that govern taxability of income received from sale of intellectual property through eCommerce Service Providers/Play Stores.
Income received from overseas eCommerce entities leads to several tough questions to existing laws on Withholding Tax, Service Tax and VAT because while framing this laws no one envisaged this new global economy.
If we don’t bring this issues to the notice of proper powers in government, we would see plethora of litigations – particularly harming the interests of small and medium businesses selling software/apps/music/videos/subscriptions through them. And our nascent Product ecosystem will receive severe blow.
It would be interesting to know – what do other members think on this?