How to determine head of bugbounty

Tax planning 1663 views 1 replies

Other than consulting. I make money from security bugbounty programs.

I use sites like bugcrowd and hackerone. (You can search about them on internet)

Basically the work is that I find security vulnerabilities in companies that are signed up in these platforms and they pay a "reward" for each valid finding (Money sent from the platform). I made some good money last year (~12L) .

I was thinking of getting a GST for this year since I am near limit. 

How do I raise GST bills for unknown amounts ? (Since only after the reward is known I can calculate the INR amount. )

Will this still be "services" ? 

My friend who is a CA is under the impression that this might be not a business income at all. And that some assessing officer might try to say this is under the head "Winnings from Lottery, Crossword Puzzles, etc)" which is a flat tax of 30%. I totally disagree. This is something I put a major effort into and something I consider part of my business. Wondering your views on the same. 

Replies (1)
Well your friend is right too that A.O might try to put it under IFOS but you can stand your ground saying it is your professional income and should be treated as income of that head (section 28 of the act).
GST- yes you will have to get yourself registered for gst and claim 0% tax as it will be treated as export services (provided you get paid in other currencies)
you can claim 0% using LUT.

regards.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register