Need some information : about revenues from apple and taxes from indian tax dept.

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5 Comments

1. 

   satish v iyer February 24, 2014, 4:48 am

   Answers below

   • How do you/we show revenue from apple in your accounting? (also admob)

   The Net Revenue you receive from Apple/ Admob will have to be shown as your revenue. .i.e. the       70% Rev Share you        receive or the Ad revenue you earn / paid Net by admob or any adnetwork.

   • what are the taxes involved like Service tax or sales tax ? or something else?

          If you are getting advertising revenue. It is not liable to service tax. Advertising revenue on internet is   not  in the  tax bracket of service tax in India. So Ad revenue earned from the networks and stores is not liable to ST.

        The paid download income ( including in-game revenue, Freemium)  you receive from stores on  downloads done outside India is not liable to service tax.

    This is because (a) The service is provided outside india ( downloads happen outside india  (b) The income Is recd/ earned from outside india in forex.  Because of these 2 conditions ST is not applicable.

    If paid downloads happen in India then it will be liable to ST in india. Then the amount received will have to be treated as taxable. Like if you receive Rs 1000 then ST will be calculated as = (1000 / 112.36) x 12.36

    

   • Are we liable to pay such taxes on the income we receive from apple or google?

   Answers are given above.

    

2. 

   Govind G Prajapati February 24, 2014, 5:16 am

   TO be more precise on my doubts(Only for Apple, Playstore Application Sale revenue)

   1. What is the nature of income we receive from Apple is (Like I guess its Royalty? or Direct Income)

   2. What if Revenue will going to be Shared to other entity via our company?
   if I am not wrong, its going to be applicable with TDS deduction, please correct me.

   3. Our downloads will going to be from everywhere from world including india, but we will be paid in full from apple in INR, how do we show them separate or its somthing we shall not care about as apple is one who is billing them?

   4. As non commerce background I would like know about on calculation how does 112.36 is there i mean what is forumla 12.36% is Rate of Service tax, 1000 is amount, 

   By General method to calculate it seems to me is (1000×12.36) / 100 = 112.36 But may be Its 1000 + Service Tax,

   and your formula says 1000 is Inclusive of Service Tax so we need to show like 

   890 + 12.36% = 1000 (I guess I gave answer to my own question here)

   5. (For my GK) Is there any kind of other tax involved apart from IT, ST if we decide to receive payment in USD or Even in INR?

   I ve heard some where around FEMA for receiving funds from foreign.

   Thanks

3. 

   Govind G Prajapati February 25, 2014, 6:43 am

   Hi Satish, if you can answer on first & third points,

   Please please please, i need to know it on urgent basis.

   Thanks in advance

4. 

   satish v iyer February 25, 2014, 8:05 am

   1) Yes It  is Royalty that Apple pays to you

   2) if you are sharing revenue with some other entity in India then you will have to deduct withholding on their payment if it exceeds the limits set by IT.You will have to deduct Tds under section 194 J if payments exceed totaling to Rs 30000. If you are sharing with someone outside India then withholding will be as per DTAA with that country and Indian tax laws.

   3) If the share from India is going to be miniscule then you need not bother. You can get GEO wise downloads and you can calculate your revenue

   4) service tax is as what you have understood. the amount you receive is total including ST

   5) Nothing else.  FEMA need not be bothered for this.

5. 

   Govind G Prajapati February 25, 2014, 9:22 am

   Thanks satish, it helps a lot.

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