I am aware of why you were banned! There was lot of partiality going on on those forums! I had met with an accident and couldnt come online back then! But someone told me abt it and experiencing certain issues I havent posted there ever since! I understood my mistake, but posting all of this on my service thread was something too much which I couldnt take! And regarding posting you as a friend, I have known you from a long time, so i don't think i made a mistake there too! Anyways Great to have you on DP! Abhishek
Almost all export related deductions under section 80 were removed in last budget. Many sections like 80HHC etc. are gone.May be for Information Technology and Software there are few deductions left.
There are no deductions for IT related works except if you are a registered STPI or a 100% EOU. Then you can enjoy a tax holiday till the year 2009. I got a 100% EOU (Export Oriented Unit) clearence last March after showing sufficient proof of works and transactions. A rule of thumb, if you are a small scale service provider opt for 100% EOU, if you are a big player ( > $25,000 a month) opt for STPI. To your success, Aritrim
Yes, it seems they are reducing it by 20% every year starting from 2005 year onwards which by 2010 will be reduced to 0 benefits
nice post abhishek. can u assist me abt adsense payments also ? if i get payments through checks from google adsense then what all do i need to declare. i am showing this income in my annual ITR and pay9ing taxes on that income to govt. doi have to submit anything extra also?
Since you are accepting payments from adsense, it is Google which bears all the conversion issues. And hopefully this conversion is done in the best interest of the RBI! Yet again, By employing Google Adsense on your website you are providing "Advertising Service" to corporate offices or other individuals via your website. Also Google is not an Indian Company, and nor is your service provided to a local domain! Hence to be on a safer side of things, I'll prefer you get yourselves an IEC code! Abhishek
I know you are asking Abhishek, but I am not sure he is still around. In my opinion, you are doing fine with your adsense setup as described. But, I am not an accountant. BTW, I do what you are doing.
Did't intend to leave actually, just the post on my service thread annoyed me! Anyways on the inside am glad that this happened Correction in the initial stage is a must ... Generally I dun plagiarise, but I thought this was a generalised post .. but was corrected by the more seniors in here and got my mistake, will be more careful in the future. All's well that ends well, now let's get back to business... shall we ? Abhishek
Yesterday I took few printouts from the sites you provided Abhishek.Now the term few is rather relative lol it was nice 50/60 pages printouts.Now I found some sections in there with which some of us (i think service providers only and not programmers) may not have to register if the payment is coming in Rupees.I will study it, discuss those sections with few professionals giving reference to all the info and provisions of the Act. and if it is something interesting, then I will let all you guys know. LOL but sometimes I feel rather than doing this, IE registration will be more simple thing .
I forgot to say that currently it seems that even a person doing data entry for someone outside India and geting payment directly from that client is doing export and he has to get him registered for IE code.If I find some exemption to this as I said in my previous post, I will let you guys know and you can check with your consultants.But till then as Abhishek said, it seems to be safe to get registered.
Listen up folks. There is NO exemption on any information technology related services WHATSOEVER unless you are duely registered with your zonal STPI or you are registered in EPZ (Export Processing Zone) or have registered yourself as an 100% EOU (Export Oriented Unit). For each of these, you have to fulfil certain criterias and the first and foremost is you MUST have 3 yrs of your income tax return filled and an IEC code. You also have to show a feasible project report when you submit the application. If you have already done a certain volume of exports (for which you have received payments either by bank wire or cheques in foreign currency only), then you will have an added advantage. As yet again, if you are doing < 4 lacs an annum, just pay your taxes consulting a tax lawyer. If you are doing > 4 lacs and < 50 lacs opt for EOU, if you are above that, you MUST opt for STPI. Edit: Rather than visiting a tax lawyer on these, visit your zonal EPZ/EOU/STPI office and have a talk with them. They know the stuff better. Edit: The links provided in the starting post of this thread carries info which is stale. If you can, purchase a handbook of EXIM policy and go through it. It costs around Rs 400.00 and is available is most book shops which sale tax oriented books. If you want an online version here it is - exim.indiamart.com/indian-exim-policy/handbook-procedures1.html To your success, Aritrim
About Exemption from tax: I fully agree with you. I was thinking about exemption from registering for ie code.Because when once you are registered, one has to file return with them.Even I am interested in knowing If we come under service tax.
If you are receiving cheques in INR, you do not need an IEC. If you are receiving payments in foreign currency, you do need it. IEC is issued by DGFT ( Director General of Foreign Trade) office and tax returns are to be filled with Income Tax offices, the two are completely different. Software Service Providers still do not come under Service Tax.
you need to file return with every authority you register with in India.Including service tax ,sales tax ,income tax and yes foreign trade authority too. and yes I agree all are different from each other so you have to file seperate return containing different details to each authority(the authority applicable) APPENDIX 19 C gives PROFORMA FOR FURNISHING OF QUARTERLY EXPORT RETURNS which can be seen at http://164.100.9.245/exim/2000/apdx06/indexapp.htm http://www.dgftmumbai.nic.in/
Thanks for the info about service tax. One good thing about service tax is that.... they have given the list of services which are included . so rest are exempt and can enjoy till they are included in the list