What type of tax should I pay
This query is : Resolved
14 October 2009
HI,
My brother prepares and sells reports and newletters to his clients in foreign countries.
Please let us know what all tax will it attract.
Also, as the reports are sold as indipendent goods...will it be beneficial to pay service tax..or any other tax?
My brother prepares and sells reports and newletters to his clients in foreign countries.
Please let us know what all tax will it attract.
Also, as the reports are sold as indipendent goods...will it be beneficial to pay service tax..or any other tax?
21 October 2009
The exact nature of service is not clear. He is a free lance writer if so no service tax. How reports are said to be goods as per you I am not able to understand?
21 October 2009
Well he actually runs a PVT LTD company
He sell the reports on various industries, which he prepares, through this company
People across the world buy these reports, so he gets a part of his revenue in other countries also.
He sell the reports on various industries, which he prepares, through this company
People across the world buy these reports, so he gets a part of his revenue in other countries also.
03 August 2025
Since your brother runs a Private Limited company and sells industry reports and newsletters internationally, here’s a simplified tax overview:
1. Income Tax
The company will pay corporate tax on its net profits as per Indian income tax laws.
Revenue from selling reports, whether domestic or foreign, is business income.
2. Goods and Services Tax (GST)
Sale of reports and newsletters is considered a supply of service under GST.
If the reports are delivered electronically or physically, it’s treated as a service.
Export of services is considered a zero-rated supply under GST, meaning:
GST is charged at 0%.
Input tax credit on inputs/services used for exports can be claimed.
You may need to file specific export documentation.
3. Service Tax (Pre-GST era)
Before GST, service tax applied to services provided in India.
Export of services was generally exempt or zero-rated.
Since GST replaced service tax in 2017, this is mostly historical.
4. Other taxes
Withholding tax (TDS) might apply if payments are received from foreign clients depending on double taxation treaties.
Foreign exchange rules (FEMA) must be complied with when receiving payments from abroad.
Summary and Recommendations:
Your brother’s company will pay corporate income tax on profits.
He needs to register for GST if turnover exceeds the threshold (₹20 lakhs/₹10 lakhs in some states).
Exports of reports/newsletters qualify as export of services and attract 0% GST.
Maintain proper export documentation for GST refunds.
Consult a CA or GST practitioner for exact compliance steps.
1. Income Tax
The company will pay corporate tax on its net profits as per Indian income tax laws.
Revenue from selling reports, whether domestic or foreign, is business income.
2. Goods and Services Tax (GST)
Sale of reports and newsletters is considered a supply of service under GST.
If the reports are delivered electronically or physically, it’s treated as a service.
Export of services is considered a zero-rated supply under GST, meaning:
GST is charged at 0%.
Input tax credit on inputs/services used for exports can be claimed.
You may need to file specific export documentation.
3. Service Tax (Pre-GST era)
Before GST, service tax applied to services provided in India.
Export of services was generally exempt or zero-rated.
Since GST replaced service tax in 2017, this is mostly historical.
4. Other taxes
Withholding tax (TDS) might apply if payments are received from foreign clients depending on double taxation treaties.
Foreign exchange rules (FEMA) must be complied with when receiving payments from abroad.
Summary and Recommendations:
Your brother’s company will pay corporate income tax on profits.
He needs to register for GST if turnover exceeds the threshold (₹20 lakhs/₹10 lakhs in some states).
Exports of reports/newsletters qualify as export of services and attract 0% GST.
Maintain proper export documentation for GST refunds.
Consult a CA or GST practitioner for exact compliance steps.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Regarding Appointment of auditor in case of casual vacancy
- GST- DRC 03 RCM Liability
- Conversion of Proprietorship Firm to Partnership Firm
- Updated return filing
- Query on managerial remuneration u/s 197 of CA 2013
- Validity of form 15 G and 15 H on Interest on fixed deposit
- Supply to unit situated in SEZ
- Temporary GST registration
- Mismatch of Sales Invoice in GSTR-1
- Acting as an Agent
- GSTR 1- Amend Credit Note
- Audit of F and O T/O
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
Trending Online Classes
CAclubindia
