Service Tax and Purpose Code? - Professionals - GST - TIK Share
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Service Tax and Purpose Code?


Rahul Sharma

2015-01-13

I am a permanent India Resident,working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I receive as income in my bank account.

My annual income is more than Rs.10 Lakh and I am working as an Individual

1.Do I need to pay any service tax on this income?

2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services - P0104 or Advertising & Market Research -P1007)

I have read a lot of information on other websites but did not find the answer so I am posting it here.

I I am a permanent Indian Resident, working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I recieve as Income in my bank account.My annual income is more than Rs.10 Lakh.and I am working as an Individual. 1.Do I need to pay any service tax on this income? 2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services-P0104 or Advertising & Market Research- P1007) I have read a lot of information on other websites but could not find the answer so I am posting it here

Read more at: http://www.caclubindia.com/forum/service-tax-and-purpose-code--316731.asp
I am a permanent Indian Resident, working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I recieve as Income in my bank account.My annual income is more than Rs.10 Lakh.and I am working as an Individual. 1.Do I need to pay any service tax on this income? 2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services-P0104 or Advertising & Market Research- P1007) I have read a lot of information on other websites but could not find the answer so I am posting it here

Read more at: http://www.caclubindia.com/forum/service-tax-and-purpose-code--316731.asp
I am a permanent Indian Resident, working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I recieve as Income in my bank account.My annual income is more than Rs.10 Lakh.and I am working as an Individual. 1.Do I need to pay any service tax on this income? 2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services-P0104 or Advertising & Market Research- P1007) I have read a lot of information on other websites but could not find the answer so I am posting it here

Read more at: http://www.caclubindia.com/forum/service-tax-and-purpose-code--316731.asp
I am a permanent Indian Resident, working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I recieve as Income in my bank account.My annual income is more than Rs.10 Lakh.and I am working as an Individual. 1.Do I need to pay any service tax on this income? 2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services-P0104 or Advertising & Market Research- P1007) I have read a lot of information on other websites but could not find the answer so I am posting it here

Read more at: http://www.caclubindia.com/forum/service-tax-and-purpose-code--316731.asp
I am a permanent Indian Resident, working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I recieve as Income in my bank account.My annual income is more than Rs.10 Lakh.and I am working as an Individual. 1.Do I need to pay any service tax on this income? 2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services-P0104 or Advertising & Market Research- P1007) I have read a lot of information on other websites but could not find the answer so I am posting it here

Read more at: http://www.caclubindia.com/forum/service-tax-and-purpose-code--316731.asp
I am a permanent Indian Resident, working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I recieve as Income in my bank account.My annual income is more than Rs.10 Lakh.and I am working as an Individual. 1.Do I need to pay any service tax on this income? 2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services-P0104 or Advertising & Market Research- P1007) I have read a lot of information on other websites but could not find the answer so I am posting it here

Read more at: http://www.caclubindia.com/forum/service-tax-and-purpose-code--316731.asp
I am a permanent Indian Resident, working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I recieve as Income in my bank account.My annual income is more than Rs.10 Lakh.and I am working as an Individual. 1.Do I need to pay any service tax on this income? 2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services-P0104 or Advertising & Market Research- P1007) I have read a lot of information on other websites but could not find the answer so I am posting it here

Read more at: http://www.caclubindia.com/forum/service-tax-and-purpose-code--316731.asp
I am a permanent Indian Resident, working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I recieve as Income in my bank account.My annual income is more than Rs.10 Lakh.and I am working as an Individual. 1.Do I need to pay any service tax on this income? 2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services-P0104 or Advertising & Market Research- P1007) I have read a lot of information on other websites but could not find the answer so I am posting it here

Read more at: http://www.caclubindia.com/forum/service-tax-and-purpose-code--316731.asp
I am a permanent Indian Resident, working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I recieve as Income in my bank account.My annual income is more than Rs.10 Lakh.and I am working as an Individual. 1.Do I need to pay any service tax on this income? 2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services-P0104 or Advertising & Market Research- P1007) I have read a lot of information on other websites but could not find the answer so I am posting it here

Read more at: http://www.caclubindia.com/forum/service-tax-and-purpose-code--316731.asphh
I am a permanent Indian Resident, working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I recieve as Income in my bank account.My annual income is more than Rs.10 Lakh.and I am working as an Individual. 1.Do I need to pay any service tax on this income? 2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services-P0104 or Advertising & Market Research- P1007) I have read a lot of information on other websites but could not find the answer so I am posting it here

Read more at: http://www.caclubindia.com/forum/service-tax-and-purpose-code--316731.asphh
I am a permanent Indian Resident, working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I recieve as Income in my bank account.
My annual income is more than Rs.10 Lakh.and I am working as an Individual.
 
1.Do I need to pay any service tax on this income?
2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services-P0104 or Advertising & Market Research- P1007)
 
I have read a lot of information on other websites but could not find the answer so I am posting it here.
I am a permanent Indian Resident, working for a company from Israel and getting the payment in USD.I am promoting/Advertising their Products/Softwares through Online Advertising and for each sale I get some commission which I recieve as Income in my bank account.
My annual income is more than Rs.10 Lakh.and I am working as an Individual.
 
1.Do I need to pay any service tax on this income?
2.What will be the purpose code for this type of Inward remittance payment? (Export of good and services-P0104 or Advertising & Market Research- P1007)
 
I have read a lot of information on other websites but could not find the answer so I am posting it here.

CA Pulkit Sharma

2015-01-13

Hi, welcome to tikshare.

Your question seems to be incomplete. Though with available information, i understand that you are residing in Israel and providing services in Israel itself.

Service tax is a imposed on location of service, if you are providing services out of India service tax is not applicable to you, since service provider and service receiver both reside out of India and even service is provided out of India.

However, if you are providing services in India. The case would be different, prior to October 2014 online advertise was out of scope of service tax but now service tax is chargeable on online advertisements too.

Similar situation was discussed in a post regarding advertisement and affilliate income.

If we refer to negative list, for sure your services are not included in it and service tax will be charged. If you are working as an affilliate agent, your services will be charged under Commission agents, advertisement agencies etc. whichever is more suitable to your core services.

Affilliate, online advertisement and advertising services all are taxable. You need to register if your revenue cross 9 lakhs and start charging once revenue touch 10 lakhs.

Please respond if you have any other point or something else to discuss on this.

Regards

Reply

CA Pulkit Sharma

2015-01-13

Regarding inward code, i think it should be P1019 (Commission agent services). If you are advertising their product on your own website then it should be P1007.

Reply

Rahul Sharma

2015-01-13

NO!! I am not residing in Israel.I am indian and residing in India only and working from home for a company in Israel.I think that will clear some doubt.

 

Reply

Rahul Sharma

2015-01-13

Hi

Thanks for your reply.

NO!! I am not residing in Israel.I am indian and residing in India only and working from home for a company in Israel.I think that will clear some doubt.



Reply

CA Pulkit Sharma

2015-01-13

Customers who buy the products are from India or Israel?

If your service is rendered outside India, than it will be considered as export of service, otherwise you have to register under service tax.

Reply

Rahul Sharma

2015-01-13

Most of the Customers are from outside India (Globally) who buy the products. Some Indians also buy products,I would say more than 95% customers are from outside India.

Reply

CA Pulkit Sharma

2015-01-14

Service tax is not charged on export of service. Question is what is export of service?

Service can be considered as export of service, if service is consumed out of India and benefits are received out of India. In your case whatever services are provided to foreign company and benefits are received out India, upto that extent services are exempt.

There are various case law on this matter. However services provided in India which are consumed within India, also if benefits are received in India. Service tax is applicable.

In your case, since you are working as commission agent and services are provided in India. Services are also consumed in India, service tax is payable.

Reply

Mukesh Jain CA

2015-01-15

Your case will get covered under Place of Provision of Services rules in Service Tax. These needs to be analysed to decide if your service is an export of service.

Reply