Babychen Mathew on GTalk - Should Indian Bloggers and web publishers pay service tax for income made through Adsense in India.
His Chartered Accountant says - Yes.
Babychen Mathew on GTalk - Should Indian Bloggers and web publishers pay service tax for income made through Adsense in India.
His Chartered Accountant says - Yes.
I have to talked to my CA and he's clearly said that Adsense income is not liable for service tax. I don't remember the exact jargon but he was pretty clear on that.
My CA was quite clear that service is applicable to Indian adsense publishers. But in such cases, it is better to find out more.
Space-selling on sites is taxable under service tax. Thats what it looks like at first glance to me.
But then there are the nuances.
Like, are publishers selling space? You can say that we never sold any space on the site to Google or the advertisers, we offered them free space, had control over revenues or never set tariffs, Google used that free space given to them for ads and gives us a commission. Are commissions on space used on a site by another party taxable? I dont know.
I have even see an argument that the ads are displayed on Google's site, not ours -- the iFrame logic.
Dont know which logic will fly and which wont.
Does anyone have a clue about the large adsense publishers in India like the newspapers?
PS. And some good sites on tax saving advice.. ;-)
The following post by finance whizkid Anurag should clear most of the doubts pertaining to AdSense Tax in India.
Now even Adsense Publishers in India will have to pay Service Tax to the government.
Read http://labnol.blogspot.com/2006/03/google-adsense-income-is-12-taxable.html
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