Is service tax applicable to google adsense income in india?

Hi CCI members, I have a website which is generating around 15 lakhs per year through adsense (no other income). is google adsense is service tax exempted.? if so under which section it is exempted. please guide me about this ...
Replies (8)

Please give details of what exactly is adsense for an answer.

AdSense (Google AdSense) is an advertising placement service byGoogle. The program is designed for website publishers who want to display targeted text, video or image advertisements on website pages and earn money when site visitors view or click the ads.

AdSense (Google AdSense) is an advertising placement service byGoogle. The program is designed for website publishers who want to display targeted text, video or image advertisements on website pages and earn money when site visitors view or click the ads.

Since Google AdSense generates income to you income excess over elegible income is taxable. Pls note following 

  • If your earnings includes web hoasting income then all revenue earned from the said business is taxed under the head Income from Business. 
  • IT is necessary see how invoice is generated by you to Google and whether it includes service tax chargeable or not. If not charged and thresold limit exceeds you need to pay from your pocket the same. 
  • Income to be treated as Income from business and all business expenses are deductable.  
  • It is pertinent to note here that Sale of Ad Space on a website is also a part of Service and Service Tax would also be levied on Sale of Ad Units on a Website/ Mobile device. From 1stJuly 2012 till 30th Sept 2014 – sale of ad space on a website/ mobile was specifically exempted from the levy of Service Tax as this was included in the negative list of services on which service tax is not applicable.
  • However, Budget 2014 brought in an amendment and now sale of Ad Unit on a Website/ Mobile would attract Service Tax @ 12.36% wef 1st Oct 2014. This Service Tax @ 12.36% would be applicable on all kind of digital ads i.e. Direct Ad Sales, Google Adsense Ads, Ad Sales through Agents etc.

  • TDS is applicable and you need to adjust the TDS recovered by Google from your final payment of Income Tax.

Yes, it is liable to service tax @ 14.5%.

However, if invoice is raised to Google outside India and conditions of Rule 6A of Service Tax Rules are satisfied, it could be considered as export of service not liable to service tax.

Invoice is raised by google singapore

If adsense income comes from Google asia Pacific Singapore and you are a publisher, your adsense income comes under export of service and you are exempted from service tax but you are liable to  pay income tax.

 

Yes, Android Gram does the same too

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