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Service Tax in India

Follower ✭ ☆ ☆
# 1
Follower ✭ ☆ ☆

Hi,

 

I recently received message that service tax on Google Adwords in India has been reduced from 12.36% to 0%.

 

http://support.google.com/adwords/bin/answer.py?hl=en&answer=2375370#IN

 

I wanted to know if I don't also have to pay to the governent any amount in taxes on adwords advertising.

 

e.g., earlier if my annual adwords cost was Rs 100,  I used to pay Rs 12.36 as service tax and I used to pay to google Rs 112.36.

 

My undersatndning is that I will now pay Google Rs 100 as adwords cost and no amount  in taxes to either Google or government on adwords advertising.

 

Please suugest if I am correct of mistaken.

 

Thanks

Byomkesh

Warm Regards
Byomkesh Kumar (https://www.linkedin.com/profile/view?id=82153512)
1 Expert replyverified_user
1 ACCEPTED SOLUTION

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Marked as Best Answer.
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Accepted by Zee (Community Manager)
September 2015

Re: Service Tax in India

Top Contributor
# 2
Top Contributor

Hello Byomkesh,

 

As per the link you stated it clearly says that:

 

For invoices dated on or after July 1, 2012, service tax rate for advertising services supplied by Google India Private Limited is 0%. Education Cess, Secondary and Higher Education Cess -- which are calculated as a percentage of service tax -- will also not be charged starting on this date.

 

So my understanding is that as the Indian Tax regulations has changed, so Google also removed the Service Tax for invoices on or after July 1, 2012.

 

Still, I would suggest you to call the Adwords Support for clarification about your Billing Invoice and refer to your tax adviser about these taxes.

 

Just a thought!

Pankaj 

View solution in original post

Marked as Best Answer.
Solution
Accepted by Zee (Community Manager)
September 2015

Re: Service Tax in India

Top Contributor
# 2
Top Contributor

Hello Byomkesh,

 

As per the link you stated it clearly says that:

 

For invoices dated on or after July 1, 2012, service tax rate for advertising services supplied by Google India Private Limited is 0%. Education Cess, Secondary and Higher Education Cess -- which are calculated as a percentage of service tax -- will also not be charged starting on this date.

 

So my understanding is that as the Indian Tax regulations has changed, so Google also removed the Service Tax for invoices on or after July 1, 2012.

 

Still, I would suggest you to call the Adwords Support for clarification about your Billing Invoice and refer to your tax adviser about these taxes.

 

Just a thought!

Pankaj 

Re: Service Tax in India

Explorer ✭ ✭ ☆
# 3
Explorer ✭ ✭ ☆

Hey

 

You are correct when it comes to the service tax that all Indian advertisers were paying has been removed in accordance with the Indian tax laws.

 

But this tax was never an annual tax as you mentioned. Whenever there was a payment made to google for the advertising cost the service tax was levied.

 

Enjoy the tax free ride till the time Indian government takes its decision backSmiley Happy

Re: Service Tax in India

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

Refer to the following article to clear your doubts:

 

http://www.vnca.com/2012/07/30/no-service-tax-on-advertisements/

 

I hope this helps.
Shaleen Shah