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New Tax for Indian IMer's on Internet and Mobile Income

Discussion in 'Business & Tax Advice' started by HatArrows, Jul 11, 2014.

  1. HatArrows

    HatArrows Regular Member

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    Modi Govt in its maiden budget has introduced Service Tax on any amount of Internet Income either through Mobile Devices or any other Online Services.Not sure of what percent they would demand,but the Govt has set it sights online.
     
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  2. Castiel999

    Castiel999 Junior Member

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    Dude can you please tell me the article no. For India with respect to the w8-ben form.And any news as to how much will the modi govt. Be deducting totally from us.Also i dont know how much is deducted from our azon affiliate revenue by U.S. And India collectively.Regards,Castiel.
     
  3. gary2

    gary2 Jr. VIP Jr. VIP Premium Member

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    The exact figures are still not known...
     
  4. Gogol

    Gogol Elite Member

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    if it is called "service tax", it should not be too much. So this seems confusing to me. I will have to pay tax on my earning anyway right? Why do I pay service tax with that? Or do I only have to pay service tax?
     
  5. Paranoid Android

    Paranoid Android Jr. VIP Jr. VIP Premium Member

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    You still pay only income tax if you're getting paid for services rendered in the USA while sitting in India, service tax is applicable only if your service based in India, like if you launch an app targeting the Indian market you pay income tax on profits plus service tax on the revenue.

    Edit: You still gotta register for service tax if your turnover crosses 900k INR per annum (this limit is soon to be reduced), and file NILL returns twice a year.
     
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    Last edited: Aug 26, 2014
  6. Gogol

    Gogol Elite Member

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    Thanks that was helpful.
     
  7. prab1996

    prab1996 Elite Member

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    Service tax and income tax are two different things.
    If your customer is not in india then i not think if you need to charge service tax.
    You will will have to pay income tax irrespective or type of income.
    (it's not that hard to game income tax,make a company and spend 70% income in purchasing new sites/other things)
    -=-
     
  8. iamsolo

    iamsolo Power Member

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    We need to pay service tax of 12.36% and w.e.f oct 1st. Don't worry it'll applicable to you only if you're earning more than INR 10L annually. Acche din.
     
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  9. sagarbest

    sagarbest Senior Member

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    this is something else... could you give some authentic source for this?
     
  10. iamsolo

    iamsolo Power Member

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  11. seosky

    seosky Power Member

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    There was No Tax for IM Income in India?
     
  12. iamsolo

    iamsolo Power Member

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    there was only income tax on im income. Now we need to pay service tax too.
     
  13. webmaze

    webmaze Registered Member

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    As the article says:

    The Service Tax will be applicable only if your annual receipts are over Rs 10.00 lacs per annum. If it under this amount, you do not have to worry. If it is above this figure, you will have to pay Service Tax @ 12.36%.

    10 Lacs == 1 million indian currency === 16608.540 US Dollar (Big number for me just from ads)

    Also, it is only from online ads not from Affiliates etc.
    http://www.hindustantimes.com/busin...ne-ads-regressive-iamai/article1-1239809.aspx
     
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