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Do you pay service tax and now GST on Adsense payment in India?

     
11:12 pm on Jul 8, 2017 (gmt 0)

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I would like to know if anyone here is paying service tax (now GST) on his Adsense payment in India or just filing returns stating export of service exemption?
7:10 am on July 9, 2017 (gmt 0)

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It is bit confusing right now as sources differs.
According to my CA who is associated with Cleartax you only need to register for GST if you are making more than 20 lakhs.
I am sticking with that for now.
9:15 pm on July 9, 2017 (gmt 0)

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Anybody else paying service tax?
10:32 pm on July 9, 2017 (gmt 0)

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I saw it mentioned in passing in the July AdSense thread: [webmasterworld.com...] they may see this after the weekend and add to the discussion.
5:12 am on July 10, 2017 (gmt 0)

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Seems like they were blaming implementation of GST for low CPC :)
7:11 pm on July 14, 2017 (gmt 0)

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Nobody pays taxes?
12:09 pm on July 17, 2017 (gmt 0)

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I am CA and an AdSense publisher as well. Service tax indeed is payable on AdSense income and there is no exemption from service tax applicable on export of service in case of adsense.

The basic exemption limit in case of service tax was Rs. 10 lac per year, which now under GST is 20 lacs per year.

So, legally speaking GST is payable.

However, practically no one in India (unless they are big companies) is paying service tax on their adsense income, as far as I know. Most of the publisher don't fall outside exemption limit and who had income of over 10 lacs from adsense was not bothered. The Government also don't have any data / financial information about this as Google don't deduct any TDS as payments are being made from Singapore.

To summaries, GST is applicable (service tax was also applicable), but very few people are actually paying it.
7:28 pm on July 18, 2017 (gmt 0)

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Sakg@ Thanks for replying. Please check the below article which has an in-depth explanation on Adsense taxation.

Source - [legaldiction.com...]

So according to the article we could claim export of service and get service tax exemption but since there was a new rule issued stating"such service is delivered outside India and used outside India" is where the problem lies.

Adsense does show its ads in India, so it cannot be claimed as "export" of service. Since you are offering Adsense ad slots in India too. But if you block Adsense service (Adsense ads) in India then you are not providing the service in India and hence can claim an exception of export of service as then you fulfill all the conditions laid down to be an export of service.

[edited by: martinibuster at 4:34 pm (utc) on Feb 19, 2018]
[edit reason] Please only quote a small part of an article, not entire article. Thanks. [/edit]