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Im long back here to this forum. I like to clarify my doubts regarding the taxations.
Basically im from a budding IT company in coimbatore. I like to know whether there is any service tax liable for the ad sense income from google. With respect to many debates on different forums i feel that there is no service tax on Google Ad income since its a foreign revenue and also we have no way of controlling the Ads.
Second thing i have some doubts in VAT taxation.. Im purchasing some items for my company and it affects 12% VAT.. I thought i would be only 4% on VAT tax. How the items are coming under full taxation and if so how the basic price would be same on all states.
Please let me have a prompt reply as im in urgent to clear my doubt on service tax.

From India , Madras
For all your quarries about the service tax you can log on to
if you not satisfy with it. mail me.

From India , Bangalore
Hi suneel,
I had already gone through the site... I think it is messed up for me to filter the things for mine. Please let me have a clear cut info regarding my question.
Hope you got my point. Awaiting for reply
Hguy. :shock:

From India , Madras

Below is meaning of VAT

Value added tax (VAT), or goods and services tax (GST), is tax on exchanges. It is levied on the added value that results from each exchange. It differs from a sales tax because a sales tax is levied on the total value of the exchange. For this reason, a VAT is neutral with respect to the number of passages that there are between the producer and the final consumer. A VAT is an indirect tax, in that the tax is collected from someone other than the person who actually bears the cost of the tax (namely the seller rather than the consumer). To avoid double taxation on final consumption, exports (which by definition, are consumed abroad) are usually not subject to VAT and VAT charged under such circumstances is usually refundable.

270 items of basic needs, like medicine, drugs, agro & industrial inputs, capital & declared goods 4% VAT Rest 12.5% VAT. Gold & silver jewellery - 1%

About Service tax

334/4/2006-TRU 28.2.2006

This entry proposes to levy service tax on sale of time or space for advertisement, excluding sale of space for advertisement in print media. Sale of advertising time in television and radio by any person other than broadcasting agency or organization is also covered under this subclause. Some of the other modes of advertisement covered under this mode are internet advertisement, advertisement on buildings, vehicles, etc., advertisement in motion pictures, television serials, video and music albums, mobile phones, ATMs , films and television serials (known as product placement). It may be noted that advertisement in print media is excluded.

Hope this will slove your issue.

From India , Bangalore
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