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Tax Advice needed for Internet Marketer from India

Discussion in 'Business & Tax Advice' started by Inviz1, Oct 5, 2016.

  1. Inviz1

    Inviz1 Registered Member

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    Hey guys,
    I run an online subscription based site and the business is booming lately.
    I take subscription money into my Personal Paypal which is connected to my personal PAN card.
    In a month I manage around 60k INR withdraw through my Paypal into my bank.
    I am clueless regarding taxes and stuff so I would like some help regarding this situation.
    How do I go about disclosing my income and pay taxes?
     
  2. Paranoid Android

    Paranoid Android Jr. VIP Jr. VIP

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    If your annual revenues go above 10 lacs you need to register for service tax. You need to pay 30% of your total income as income tax. You are allowed to deduct expenses from your revenue, expenses towards your hosting, a part of your power bill, computer repair costs, software costs and any other payments to other freelancers.

    If your turnover crosses 10 lacs a year you need to pay 15% of taxes on your revenue. So if you get paid 10 lacs a year, you need to pay 1.5 lacs towards Service Tax, and lets say you make a profit of 5 lacs on that after expenses, you pay another 1.5 lacs to the income tax dept. Your profit after taxes would be 2 lacs.

    Enjoy doing business in India.
     
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  3. Inviz1

    Inviz1 Registered Member

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    I read if you earn more than 2.5 L/Year then you need to pay income tax.

    There are so many Indian BST sellers making much more than me, can someone please tell me how do you guys pay taxes and process for the same.
     
  4. Paranoid Android

    Paranoid Android Jr. VIP Jr. VIP

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    dude, talk to an auditor man, fine someone in delhi or bombay, don't go to the locals in your town.
     
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  5. Rock_Shock

    Rock_Shock Regular Member

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    What about adsense and amazon ? Service tax applicable there ? if not which tax ? Will be above 10 L easily this year..Will appreciate advise before I go to accountant as I have a possibility of showing income offshore..
     
  6. Paranoid Android

    Paranoid Android Jr. VIP Jr. VIP

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    when you're paid by adsense in INR, and if your site targets Indian visitors you are liable to pay service tax if your annual revenue goes above 10 lacs. If you are getting USD wires you can treat it as export.

    I had a hard time explaining to them about my Paypal payments into my bank account in INR while payments were actually received in USD, and paypal has been an RBI approved method of receiving international payments since 2010.
     
  7. Saviour

    Saviour Regular Member

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    Hey OP
    I have been filing taxes since 6 years both as proprietor and as a registered pvt ltd firm. As far as I know and according to my CA's advice you dont need to pay any service tax if the amount received is from overseas or in other currencies.
    You will be eligible for service charge only if you collect money from Indians and there is certain slab for it as well. I think if you receive amount above 8 lakhs per annum you should pay service tax
    I have 90% of foreign clients and very less Indian clients so I haven't paid any service tax till date nor even registered for something called TIN number i guess which is mandatory if you want to deduct service tax.

    In your case you are receiving money into paypal so I presume that you have foreign clients or revenue is from overseas. So I am damn sure you don't have to pay any service tax.
    But you are eligible for income tax provided your profit is above 2.5 lakhs after all expenses
    And if you have invested 1,5 lakhs in scheme 80 c you will be exempted for the full 1.5 lakhs. So you will be eligible to pay taxes only if your profits are above 4 lakhs !
     
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  8. Rock_Shock

    Rock_Shock Regular Member

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    Damn the indian government.. Any idea about what PIO have to pay.. If someone is doing large scale and wants to let go of citizenship and stay on PIO and acquire foreign citizenship
     
  9. Visit

    Visit Senior Member

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    i thought they just use paypal and swiss bank account?
     
  10. Paranoid Android

    Paranoid Android Jr. VIP Jr. VIP

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    as if other countries are waiting in line to give indians citizenship :D
     
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  11. krishnaverma

    krishnaverma Power Member

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    I am not a legal expert but there are a number of ways you can reduce the tax burden. Here are some tips:

    1) Income till Rs 250000 is non-taxable. Thus, if your profit is below 250000, you will not have to pay any tax.
    2) You can deposit additional Rs 150000 in schemes like PPF (Public provident fund) to save tax on that amount. PPF also gives good interest rate and thus it is better to keep money there in comparison to FD or savings account. So, you need not pay any tax till Rs 400000 income if you deposit Rs 150000 in PPF.
    3) Now since, you are getting the money in PayPal account or say in your bank, you can ask some of your clients to make payment to another paypal id or bank account as well. If you have an unemployed relative, you can create the accounts on his name and receive additional Rs 400000 this way. This is best in case you have a wife or mother who is unemployed (housewife). To be on the safe side, teach them the work as well and you may get some work done by them as well. This will come handy in case that person is asked regarding proofs of his/her income source. This is actually, one of the benefits of online work. In your case (Rs 60000 per month or 7.2 lakhs per year), you need not pay any taxes by taking help of another unemployed relative (as you can save tax for upto Rs 800000 as described above).

    Note that I do not support any illegal or unethical ways (and there are many such ways) to save taxes. I support taxes especially in India, as it is for the benefit of poor. How that tax money is being used (or misused) is debatable. Better adapt to the rules and you may consult a CA if you are doing big transactions.
     
  12. Rock_Shock

    Rock_Shock Regular Member

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    You have no idea how the world works.. I don't even feel like divulging info here.. seems people here are probably not of the league or of the intellect that top dogs are.. read citizenship by investment.. Paisa ho to legally many MANY european, east asian, south american countries are ready to give citizenship in 4 weeks flat.. Read & research first before making sarcastic comments.. In response to your ignorant comment.. let me make a correction:

    MANY other countries are waiting in line to give ANYONE citizenship AS LONG AS THEY ARE RICH.
     
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  13. Rock_Shock

    Rock_Shock Regular Member

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    Thanks mate.. advise is solid.. but falls in a category i surpassed long time ago. Thanks though...
     
  14. krishnaverma

    krishnaverma Power Member

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    I am sure you might be aware about additional methods to save tax. Do share them if you wish so that all can benefit.
     
  15. malamunja

    malamunja Jr. VIP Jr. VIP

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  16. W9go

    W9go Jr. VIP Jr. VIP Premium Member

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    What money you are talking about in india you have rupie and not lacs ??????
     
  17. krishnaverma

    krishnaverma Power Member

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    Can you explain what you meant by this ?
     
  18. abhijit369

    abhijit369 Junior Member

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    Okay, why don't you make a habit of checking the profile of people before replying like this. I am not talking about the statistics of PA here, check his posts and then talk about him. You say that he don't even know about how the world works, do you even have a passport. Including me, he is an inspiration to many here.

    As far as I know, you can buy a US green card for 500,000 USD but you will not get it in 4 weeks. They give green card who invest in at least 500,000 in any US companies if I am not wrong. I don't know which country is giving citizenship to anybody within 4 weeks just because they are rich and pay money for that!. There will be some verification including police check etc. It would be nice, if you can share a list of countries here with their official links about selling citizenship and not some crappy blog links.
     
  19. Edunoddy

    Edunoddy Registered Member

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    As a student of taxation, i know India falls in category of countries which charge huge tax but remember that is not as much as we calculate just by reading some internet posts. There are several ways by which you can save tax. Just find a qualified chartered accountant and explain your case, he is the person you need to contact for proper tax advice and to save taxes and money but before that earn as much as you can. And don't shy to pay taxes. They will not be that much to worry about.
     
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  20. Douson

    Douson Newbie

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    don't go to the locals in your town.