Patent protection granted to an inventor by a government is only valid in the country where the inventor requested it. The rights do not extend beyond that country. ... When you wish to obtain patent protection for the same invention in other countries, you must file an application in each country separately. Introduction to taxation. ... All governments require payments of money—taxes— from people. • Governments use tax revenues to pay soldiers and police, to build dams and roads, to operate schools and hospitals, to provide food to the poor and medical care to the elderly, and for hundreds of other purposes.

1. DEPARTMENT OF C.S.E.
B.E.D LAB
REPORT
ON
PATENTS AND TAXATION
SUBMITTED BY:- SUBMITTED TO:-
CHANDRAMOHAN MR. DINESH SWAMI
16ERECS010 ASST. PROFESSOR
IV SEMESTER C.S.E. DEPARTMENT

2. INTRODUCTION ABOUT PATENTS AND TAXATION
• Patents:-A patent is a set of exclusive rights granted by a sovereign
state or intergovernmental organization to an inventor or assignee
for a limited period of time in exchange for detailed public disclosure
of an invention. An invention is a solution to a specific technological
problem and is a product or a process.
• Taxation:-A means by which governments finance their expenditure
by imposing charges on citizens and corporate entities.

3. PATENTS
• Patents are a form of intellectual property.
• The procedure for granting patents, requirements placed on the patentee, and
the extent of the exclusive rights vary widely between countries according to
national laws and international agreements.
• HOW IT WORKS (EXAMPLE):
• A patent prevents others from using, making or selling a specific invention
within the U.S. Use of the term "patent pending" or "patent applied for" is
intended to inform the general public that the inventor has filed a patent
application on the item, but these terms do not protect the inventor until a
patent is actually granted. Only the inventor of the invention can apply for a
patent, although there are exceptions.

4. CLASSIFICATION OF PATENTS
There are three types of patents:-
• Utility patent
• Design patent
• plant patent
Utility Patents
A utility patent is the most common type of patent that people seek. This type of patent covers
processes, compositions of matter, machines, and manufactures that are new and useful. A utility
patent can also be obtained for new and useful improvements to existing processes, compositions of
matter, machines, and manufactures. Processes refer to any acts or methods of doing something,
usually involving industrial or technical processes. Compositions of matter are basically chemical
compositions, which can include a mixture of ingredients or new chemical compounds. Machines
include things that are generally defined as a machine, such as a computer, while manufactures are
defined as goods that are manufactured or made.

5. Plant Patents
A plant patent can be obtained to protect new and distinctive plants. A few requirements to obtain this
type of patent are that the plant is not a tuber propagated plant (i.e. an Irish potato), the plant is not
found in an uncultivated state, and the plant can be asexually reproduced. Asexual reproduction means
that instead of being reproduced with seed, the plant is reproduced by grafting or cutting the plant.
Plant patents require asexual reproduction because it's proof that the patent applicant can reproduce
the plant.
What rights does a patent provide ?
A patent owner has the right to decide who may – or may not – use the patented invention for the
period in which the invention is protected. In other words, patent protection means that the invention
cannot be commercially made, used, distributed, imported, or sold by others without the patent
owner's consent.
Design Patents
In terms of obtaining a design patent, a design is defined as the "surface ornamentation" of an object,
which can include the shape or configuration of an object. In order to obtain this type of patent
protection, the design must be inseparable from the object. While the object and its design must be
inseparable, a design patent with only protect the object's appearance. In order to protect the
functional or structural features of an object, a person must also file for a utility patent.

6. Advantages of patents
• A patent gives you the right to stop others from copying, manufacturing, selling or importing your invention without your
permission. See protecting intellectual property.
• You get protection for a pre-determined period, allowing you to keep competitors at bay.
• You can then use your invention yourself.
• Alternatively, you can license your patent for others to use it, or sell it, as with any asset. This can provide an important
source of revenue for your business. Indeed, some businesses exist solely to collect the royalties from a patent they have
licensed - perhaps in combination with a registered design and trade mark. See how to license a patent.
Disadvantages of patents
• Your patent application means making certain technical information about your invention publicly available. It might be that
keeping the details of your invention secret will keep competitors at bay more effectively.
• Applying for a patent can be a very time-consuming and lengthy process (typically three to four years) - market may have
changed or technology may have overtaken your invention by the time a patent is granted.
• Cost - it will cost you money whether you are successful or not - the application, searches for existing patents and a patent
attorney's fees can all contribute to a reasonable outlay.
• You'll need to remember to pay your annual fee or your patent will lapse.
• You'll need to be prepared to defend your patent. Taking action against an infringer can be very expensive. On the other
hand, a patent can act as a deterrent, making defence unnecessary. Read more about patent protection and enforcement.

7. WHAT IS TAXATION
• Taxation :- Taxation is the process of a government claiming money from
the general population for the purpose of using that money to run the
country. Governments use taxation to encourage or discourage certain
economic decisions.
For example :- Reduction in taxable personal (or household) income by the
amount paid as interest on home mortgage loans results in greater
construction activity, and generates more jobs.

8. TYPES OF TAXES OR TAXATION
Direct Tax
• It is names so because it is directly paid
to the union government of india.
e.g. 1) Corporate tax
2) personal income tax
3) Banking tax transaction tax
4) Capital gains tax
5) Fringe benefit tax. etc
Indirect Tax
• This type of taxes in nation is generally
levied on some specified services or some
particular goods
• Usually, the indirect taxation in the indian
republic is a complex procedure that
involves laws and regulations, which are
interconnected to each other.
e.g. 1) Sales tax
2) Service tax
3) VAT
4) Custom Duty. etc
THERE ARE TWO TYPES OF TAXES IN INDIA

9. VAT
• VAT(Value Added Tax):- A value added tax(VAT) is a type of consumption tax that is placed on a
product whenever value is added at a stage of production and at the point of retail sale.
• VAT is usually implemented as a destination-based tax, where the tax rate is based on the
location of customer.
• The amount of VAT is decided by the state as percentage of the end-marketprice.
• To understand what this means, consider a production process(e.g., take away coffee starting
from coffee beans) where products get successively more valuable at each stage of the process.
When an end-customer makes a purchase, they are not only paying for the VAT for the product
at hand(e.g., a cup of coffee),but in effect, the VAT for the entire production process (e.g., the
purchase of the coffee beans, their transportation, processing, cultivation, etc.),since VAT is
always included in the prices.

10. • In general, countries that have a VAT system require most businesses to be registered for
VAT purposes. VAT registered businesses can be natural persons or legal entities, but
countries may have different thresholds or regulations specifying at which turnover levels
registration becomes compulsory. VAT-registered businesses are required to add VAT on
goods and services that they supply to others (with some exceptions, which vary by
country) and account for the VAT to the taxing authority, after deducting the VAT that they
paid on the goods and services they acquired from other VAT-registered businesses.
• VAT was introduced into the Indian taxation system from 1 April 2005. Of the then 28
Indian states, eight did not introduce VAT at first instance. There is uniform VAT rate of 5%
and 14.5% all over India.

11. GST
• Goods and Services Tax (GST) is an indirect tax levied in India on the sale of goods and
services. Goods and services are divided into five tax slabs for collection of tax - 0%, 5%,
12%,18% and 28%. Petroleum products and alcoholic drinks are taxed separately by the
individual state governments. There is a special rate of 0.25% on rough precious and semi-
precious stones and 3% on gold. In addition a case of 22% or other rates on top of 28% GST
applies on few items like aerated drinks, luxury cars and tobacco products.
• The single GST(goods and service taxes) replaced several former taxes and levies which
included: central excise duty, services tax, additional customs duty, surcharges, state-
level value added tax.
• GST is getting change with time as per the modification in taxes by government.

13. GST Advantages
• GST is a transparent tax and also reduce number of indirect taxes.
• GST will not be a cost to registered retailers therefore there will be no hidden taxes and and the cost of doing
business will be lower.
• Benefit people as prices will come down which in turn will help companies as consumption will increase.
• There is no doubt that in production and distribution of goods, services are increasingly used or consumed
and vice versa.
• Separate taxes for goods and services, which is the present taxation system, requires division of transaction
values into value of goods and services for taxation, leading to greater complications, administration,
including compliances costs.
GST Disadvantages
• Some Economist say that GST in India would impact negatively on the real estate market. It would add up to 8
percent to the cost of new homes and reduce demand by about 12 percent.
• Some Experts says that CGST(Central GST), SGST(State GST) are nothing but new names for Central
Excise/Service Tax, VAT and CST. Hence, there is no major reduction in the number of tax layers.
• Some retail products currently have only four percent tax on them. After GST, garments and clothes
could become more expensive.

14. SALES TAX
• A sales tax is a tax paid to a governing body for the sales of certain goods and services.
Usually laws allow (or require) the seller to collect funds for the tax from the consumer at
the point of purchase. When a tax on goods or services is paid to a governing body directly
by a consumer, it is usually called a use tax. Often laws provide for the exemption of certain
goods or services from sales and use tax.
• Collecting Sales Tax
• In order to collect sales tax from customers, companies first need to apply for a sales tax
permit from their state’s department of taxation. Some states provide permits at no charge,
while others charge a fee.

15. DIFFERENCE BETWEEN VAT, GST AND SELL
TAX
VAT
• VAT is to be paid by both
producer as well as
consumer while sales tax
is levied entirely on
consumers
• VAT is levied on various
stages of production while
sales tax is applicable on
the final value of
purchase
• VAT is able to avoid
evasion successfully while
sales tax is easy to fiddle
with
GST
• GST is the common
indirect tax non for supply
of both goods and
services.
• Goods and Services Tax is
best described as a sales
tax that applies not only
to finished products but
also to services as well.
SELL TAX
• Sales tax, as compared to
VAT is the percentage of
revenue imposed on the
retail sale of goods. Unlike
VAT, sales tax is levied on
the total value of goods
and services purchased.
• Sales tax is collected by
the retailer when the final
sale in the supply chain is
reached via a sale to the
end consumer.

16. REFERENCES
• www.google.com
• www.wekepedia.org
• www.bankbazar.com
• www.youtube.com
• www.slideshare.com