It is reported that OECD is discussing the possibilities of taxing music
 downloads on the Net. While the taxation authorities all over the world are
 engaged in capturing the net transactions to tax the beneficiaries on the ground,
 there is need for the taxation authorities not to go overboard with the concept. 

 For example, while downloading a file to a client's computer for repeated use is
 easy to be accepted as a "Sale", "Trial download s" which stay for a limited
 period in the client's computer and get disabled, as well as "Real Audio/Video"
 downloads are in a different category. They are more in the nature of a
 broadcast over a Radio or a TV. Will this difference be kept in mind by the
 taxation authorities?  

 If this principle of "Permanent and Repeated Usability" Vs " Limited ,Trial, or
 Onetime usability" is not distinguished in 'Music downloads", it would also
 create precedents which could affect the business of Application Service
 Providers. 

 Similarly, if "Music Downloads" are valuable enough to be "Taxable", "Content
 Downloads" can also be considered "Taxable" if not now, some time in future. 

 Another controversy which will come in course of time is whether a "Free
 Download" would also amount to taxation at a "Notional Value"? 

 It is therefore necessary to consider "Download of all Electronic Documents" as
 " Transfer of Cyber Property" and not taxable under the laws of the "Meta
 Society". Netizens have to realize the long-term implication of this attempt to
 tax music downloads and express their strong reservations against this attempt
 to tax  Cyber Society. 
Naavi
November 08, 2000

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