Service Tax on Adsense Income in India

Should Bloggers Pay Service Tax on AdSense Income in India?

Thousands of Indian Students, Professionals and working mothers are becoming full time bloggers.  I have started my blogging journey in 2010, if you check my earning since 2010 to till date which is a decent amount to live life in India happily.

Any Indian earns money he is liable to pay tax to Indian Government. Analyse and calculate your earnings for financial year, it become easy to file tax to the government. If you are a full time blogger and getting some decent income then you can file the tax under the head “Income from Business or Profession” otherwise it will come under “Income from other sources”. Don’t forget to keep receipts of monthly Ad sense earnings.

Service Tax on Income from Advertisements

Indian Ministry of Finance on June 20, 2012 released the educational guide on Service Tax,it is mention that Service Tax is to be levied on the sales of space for advertisement or time for advertisement to be broadcast on television.  

Note: you can claim Service Tax if you have already paid on online income from Google Ad-sense or direct advertisement sales.

Service Tax on Affiliate Income of Bloggers

If you have earnings through affiliate marketing (like commissions from Amazon Affiliate Program) or by providing related services on the web (www), Service Tax would be levied on such services.

Service Tax is not required if the gross income is less than Rs.10Lakhs.