Hello Everyone, I have a digital product. I would like to sell it using my website. Product value is $45. But I’m giving 50% for affiliates. So if I sell 100 products via affiliates, then I have to give $2250 to affiliates and keep remaining $2250. But my question here is, how should I deal with my income tax reports? According to RBI, paypal cannot keep my money for more than 7 days. Because of this reason, I have to withdraw all my $4500 within 7 days. If I withdraw all my money, then my statements will show it as I earned $4500. Can someone tell me how to handle this problem?
There is no way to avoid unless you open a bank account abroad and get paid to it. By the way the 4500 paid to bank account is your sales revenue and not net earnings. You got to deduct the affiliate payment as expenses and then declare the balance as profit. Talk to a Chartered Accountant to figure out how to do it exactly.
Then its simple. You can show IT department that you are paying 50% through your CC to affiliates as an expenditure. DON.