What are the tax implications?

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Hello,


I have a multi-author blog and the all the earnings are on my name and I am paying the authors monthly from the same amount. I am working from home and use a part of our home and internet. So what are the tax implications and what expenses and how do I show the expenses as I am paying to the other authors.


Thanks

Replies (5)

Income from business and profession.

What you are paying to the authors is like a fee or commission for rendering their authorship services to you, and these are deductible. There is no employee-employer relationship with these authors. Expenses incurred to run the blog/website too is deductible. Whatever is left after paying off the authors and blog maintenance, is your income/profit. 

Are you deducting TDS from payment to these authors?

 

agreed with mihir..also tds shud be deducted while paying authors..

Hi, thanks for the reply.

The payments are actually sent by paypal (through credit card) overseas, some by direct cash, and some by transfer/check and I pay for Internet and servers in USA.

So what records do I need to maintain and what is TDS % for Indians and TDS % for overseas payments and lastly is their anylimit like 2 lakhs where we need not deduct it (Indians and Overseas payments)?

Thanks

any help friends?

If u are making payment to a non-resident ,30.9% tax shall be levied and to a resident Indian,10%.These are the rates of TDS for professional fees. 

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