now will that mean that any advertisers who will target india via google need to pay the service tax....????? and i believe 10.2% is the service tax in india...
I am not sure but I think it means that Indian advertisers (with billing addresses in India) would have to pay the service tax. And yes, you are right, it will be 10.2%.
not sure, how it would apply to advertisers abroad who are geo-targeting India but have billing addresses abroad .
Service Tax is paid by the entity providing the service NOT BY THE BUYER OF THE SERVICE. (Although mostly the buyers get charged for it separately). Google will have to pay the tax on whatever ad space it sells in India...doesnt matter if the advertiser is targetting US market. I was wondering how many webmasters in India actually pay service tax for selling advertising space
Exactly, so the tax will be paid by Google to the government but of course, it would bill this to its buyers
This means advertisers in India will have to churn out more money for adwords, which would ultimately affect their budgets. I think google should absorb this tax instead of asking advertisers to pay up. Just wondering whether yahoo india, msn and rediff will also have to pay such service tax, coz they also sell advertising space on their portals. Anybody got any ideas???
how about the other websites that are selling textlinks in their webpage ? i wonder how the govt. is going to monitor this ? for ex. if i am selling ad space discreetly and i declare to govt.that i dont sell space, how will they know i am telling the truth....
Why is this a big issue? I'm certain that Google UK will have to pay VAT on the services it provides, so why is it a big deal that they have to pay a "service tax" (which appears to be considerably less than VAT) in India?