Adsense and Service Tax in India

Are we supposed to pay service tax on our Adsense earnings in India?
What do other adsense publisher from India think about this?

 

No. The reason is Google is already collecting the service tax from the Adwords advertisers.

Anyway the threshold limit limit for service tax is a turnover of Rs 8 lac per year. Hardly any publisher in India is making that.

If a publisher suspects that this turnover is going to cross the threshold limit, he should separate out his sites into different business entities. This is just a precautionary measure. You never know - IT officials in India make ridiculous interpretations of taxation laws.

Here is an article about it.

 

No.

Are you providing the adsense service? Or is Google?
Pay your income tax, the IRS won't be at your door.

 

Publishers and Service Tax don't go hand in hand. Advertisers and Service Tax do go hand in hand.

 

Wrong. Selling of advertising space is subject to service tax.

If you are directly selling advertising space and your revenues are over the threshold limit, you as the publisher are responsible for collecting service tax.

It always the seller of services who collects the service tax.

However in case of Adwords - Adsense, the sale is taking place between Google and Adwords publisher, so Google is supposed to collect the service tax.

 

Ok sit down with one of the guys from the Indian Tax Dept.

If they can understand you after 13 hours of explanation of what Adsense really IS ...... YOU DA MAN!

 

I dont know about service tax. But you need to pay income tax. Thats for sure.

 

I am talking about a 1.8 Cr INR turnover just from Adsense.

I am renting out space on my website for advertisers, so I am the one providing the service of renting out.

Thats exactly what I was thinking. Renting out a space for advertisement (in offline business) is subject to sevice tax. So I was thinking whether online renting space for advertisement comes under it or not.


So, anybody who has experience in this? Or do I have to do all the research with all those IT guys..(not again.. they suck.)

 

I Think You Have To Pay Tax For Your Earnings , Just Like You Pay For Your Income

 

I know I have to pay tax, and I do that. I am talking about service tax.

 

IS it per year, seriously

I would like to "just see" your sites..

Yes, you are providing a service - called advertisement service on your sites..and if you cross >8 lacs per year of your income, you are bound to pay the tax.. (as far as i know )

 

Is there anybody who has ever paid service tax for adsense in India?

 

Let me interpret it this way

In Income Tax and Service Tax regulations there is a concept called your place of business, if you have hosted your website outside India, then your place of business happens to be that country, so your income generated is international income remittance to India, right now this is not taxable, so no Service Tax applies to it.

Now comes the Income Tax part, since your income is available for spending in India and since you are a resident Indian, all your income exceeding Rs 150000/- is taxable, so you need to pay Income Tax

Sum it up, no Service Tax but pay Income Tax

You can avoid Income Tax too, if you are a Non Resident Indian

I am a finance guy and this is confirmed

 

I think sachin had solved the maximum tax problem here.

 

Ya, that looks convincing. This is the sort of thing I was looking for. Now if I discuss it with my CA (who has no knowledge of what adsense is), I can give this argument and make him understand.
Thank you. Green for you

 

I am amused, do you actually earn that kind of income, great buddy, i m making around 5% of it, can you give some more details to me on this, PM me if possible, thanks

 

I run a company and its the company's earning.

 

LOL. And I had TRIED to use my common sense on this one

 

can you tell me how sachin had solved the maximum tax problem?

 

wow.. this thread is a real source of information for publishers from India.
Thanks cashisfilthitakecheck buddy.. nice info there. Reps added.