Adsense and service tax (Indian publishers)

[morpheus83]

Whenever I deposit foreign cheque I am asked the source of the income. For which I write services rendered. However now I am worried that I may be charged the service tax a whooping 10 %. Am I liable to pay this? Any way to avoid it? :)

[getadsensed]

When you are getting checks on a regular basis from a foreign company you ought to keep accounts and pay taxes (ever if you're getting a measily amount).

[morpheus83]

Getadsensed are you from India.

[getadsensed]

YES.

[vibgyor79]

Change your bank - go for ICICI Bank or Citibank. You don't need to declare the source of income.

AdSense income doesn't come under Service tax. That's because services are being rendered in the USA and not in India. That is, you are supposed to pay service tax only if the income is in Rupees.

[Naveenn]

Get foreign inward remittance certificate. You don't have to pay tax of foreign Income. Specially USD, In other words, you are helping the economy to grow.

Cheers!

[gopi]

>> Get foreign inward remittance certificate. You don't have to pay tax of foreign Income

Are you talking only about the service tax or including income tax also? . I beleive you have to pay income tax on any income if you are in india , foreign or domestic ! .

[freedata]

I agree with Gopi. You should pay uncle Babu no matter where the income is from. You better talk to a good CPA. Paying taxes is good for Indian state and also will help you in the long run if you do business legitimately. Ofcourse there are many ways to reduce (not evade) the taxes. Paying for a company car/deiver, HRAs etc are to name a few.

[nealc]

icicibank has what you call a:

Resident Foreign Currency (Domestic) Account (RFCD

which states that...

Resident Indians are permitted to open, hold and maintain Resident Foreign Currency (Domestic) Account out of foreign exchange acquired in the form of currency notes, bank notes, travelers cheques and out of, foreign exchange earned and/or gifts received from close relatives (as defined in the Companies Act) and repatriated to India through normal banking channels by resident individuals. Foreign exchange earnings could be through export of goods and/or services, royalty, honorarium, etc.

So I guess one can open this account to deposit google adsense checks in India.

[Prash_seo]

Hiya All!

I wanted to know whether any webmaster here from India has paid any services Tax for incoming USD through Adsense.

Please do let me know.

regards,

Prash.

[Prash_seo]

PS:

Anyone from here on Orkut?

I am there as prashant_seo

regards,

Prash

[nealc]

Revenue from Google Adsense is revenue from selling advertising space.

I wonder if this qualifies to be taxed as service tax?

[morpheus83]

BTW how much time it takes for adsense checks to clear. It takes 40 days for my bank to clear (ABN Amro)

[alexabin]

Hi,

I am getting around 4-5 thousand $$$ in a month and my first cheque is to come this month..

I have got a PAN No. which is not assictaed with this and is in my personal name.

The site I run as a hobby and the adsense cheque will also be in my name.

If I submit this cheque with my own PAN No., should I have to pay 30% (blindly) tax on my total income?

How can I avoid some taxes?

rgds

[morpheus83]

There are a lot of ways to avoid IT. Ask you CA for this. You can get RBI bonds and stuff.

[gopi]

Alex , You cannot avoid taxes altogether that too for a big sum like yours (indian standards ) as IT department knows abouts most of the transactions more than Rs50k , said all this i suggest to hire a competent CPA who can be little creative with deductions :) ...

Atleast you should be grateful you are just paying a max of 30% (most cases much less than that) only in taxes while in many western countries it can go nearing 50% (some cases more than that!)