Is 44 AD applicable to Google Adsense/online advertising income ?

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  1. optimus_prime

    optimus_prime New Member

    I'm confused. The details available online regarding this is conflicting. Some experts claims the nature of earning is commission and 44 AD will not be applicable.

    But I think, it's an advertisement business where Google is acting on behalf of advertiser and publisher. So, publishers are sellers and they earn revenue by selling the ad-space on website, not via commission/brokerage.

    What's your take on this ?
  2. Manoj Mehra

    Manoj Mehra Active Member

    In my opinion -In this case, it is Google who is acting as a Commission Agent and not the Publisher.

    The publisher is doing normal regular business.

    Therefore, 44AD should be applicable.
    optimus_prime likes this.
  3. Manoj Mehra

    Manoj Mehra Active Member

    Could you please share the viewpoint of the people who say that 44AD will not be applicable.
  4. optimus_prime

    optimus_prime New Member

    Thanks for the quick reply, Manoj. That's exactly what I think. Here is that blog article, the reason behind my whole confusion.
  5. Manoj Mehra

    Manoj Mehra Active Member

    Kindly refer Pt. 2 in the link shared by you:-

    This is the fundamental assumption on which the article is based. Do you think this assumption is true?
  6. optimus_prime

    optimus_prime New Member

    I don't think so. Google Adsense (which is probably being referred as agency here) is compatible with lots of other similar ad-serving company. So, the above assumption is false.
    Last edited: May 26, 2015
  7. Manoj Mehra

    Manoj Mehra Active Member

    It is on the basis of this assumption, the author has classfied publishers as an Agency and stated that Section 44AD is not applicable.

    As the above Assumption is false, therefore the analysis of the author in the link is incorrect.

    You can inform this fact to the Author of the Article.
  8. Manoj Mehra

    Manoj Mehra Active Member

    PS: Take the case of any website - Economic Times or Hindustan Times or any other website - they all have Adsense Ads as well as other agency ads
  9. iam_on

    iam_on New Member

  10. sanjay_p

    sanjay_p New Member

    can anyone clarify this ?
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