Is there any tax on ads earning by personal site? (in India)

Discussion in 'Legal Issues' started by osmasters, Oct 21, 2011.

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  1. #1
    Hi,

    I have few websites. Those websites are just general information websites.

    I am doing advertising in Google adwords and earning through Google Adsense. No other earning from site.

    My expenditure on sites are 75% of my earning through sites. Expenditures are like Advertising, paid directory submission, content subscription etc.

    Now, I want to know what are taxes are applicable to me (in India).

    Suppose, I am earning 1000 USD per month and spending 750 USD on sites and net profit is 250 USD per month.

    1) Do I need to pay any service tax?
    2) Do I need to pay any foreign tax as I am getting paid from Google adsense?
    3) I am doing many money transaction to foreign through paypal for content subscription and paid directory submission. Is there any tax on this?

    In short, I am already paying Income Tax according to my web earning. Is there any other tax I need to pay if I earn through Google adsense in my sites?

    I am sure there are many like me in this DP so Please guide me and Thanks in Advance for your guidance.
     
    osmasters, Oct 21, 2011 IP
  2. revathychn

    revathychn Well-Known Member

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    #2
    Yup ! you do
    read the income tax site of Govt of india
    You are earning foreign exchange & you are selling your work ( thats what they say :) )
    Its taxable & best to approach an income tax practitioner nearby than to ask on this forum
    How are you paying tax ? all ads are on foreign sites so u are spending forex also ?
    ohh my god !!!!:eek:
    you pay income tax only thru IT dept
     
    revathychn, Oct 21, 2011 IP
  3. osmasters

    osmasters Well-Known Member

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    #3
    I am just paying to Google adsense through my bank in INR and I am getting paid through Google Adwords in INR. Its like I am paying to Google India and I am getting paid from Google India. No Foreign Exchanges.

    BTW: I am not doing any service to them. I am not getting paid from foreign client for design, development work. Its my site and its personal. Not for others.

    Do you think i need to pay any foreign tax or service tax?
     
    osmasters, Oct 21, 2011 IP
  4. WizIMS

    WizIMS Member

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    #4
    Yes there is income tax for all countries (except few ones)
     
    WizIMS, Oct 22, 2011 IP
  5. Rukbat

    Rukbat Well-Known Member

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    #5
    Since India taxes personal income (which is what this income is), of course you have to pay tax if you don't want to violate the law. Whether you earn the money by performing a service, providing goods or practicing magic, it's personal income - money that you earn by doing something. (Buying a bond that provides you with quarterly payments is income - and you just made a phone call or visited someone's office. Once. It's still taxable.)
     
    Rukbat, Oct 24, 2011 IP