Affiliate Income taxable in India?

[cher123]

These days one can notice how the affiliate marketing has picked up like anything. The affiliate networks like Clickbank and CJ are offering good commissions. Is the amount earned through these commissions taxable mainly in india? How should one file the tax returns for the payments done through this process. Do we need to open a current account instead of savings account.

Anybody having the previous experience dealing in these issues could answer it appropriately. I would like to know the real facts from the Indians so that they could assist me.

Regards,
Cher

[Green_Grass]

Service tax is payable on affiliate income ( commissions)if it exceeds Rs 8,00,000 per year. You need to register with the appropriate excise office, get a service tax no. and start paying tax and filing returns.

Of course all income is taxable under income tax also.

[Manish Singh]

Affiliate income is no different than regular income except that you probably earn it in $$ instead of INR.

Just declare your income as commission and pay tax on it. It doesn't matter if you open a current a/c or savings a/c.

I don't know if Affiliate income can be classified as importing services. But if it is, then you will need to get a service tax number and pay additional service tax on your income as well. Consult a CA who specializes in indirect taxes for best advice :-)

[cher123]

If the income crosses, 10 lakh INR, then what is the taxable income incase of affiliate income?