Service Tax on Mobile Advertisement in my Mobile App

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  1. HONEY

    HONEY New Member


    i need clarification whether i am liable to pay service tax on my earning through mobile ad with the help of google add programme . my income is in the form of dollar received directly in my saving account from one company of google (i.e. google admob inc.) my income in current year is more than 10 lakh.

    it is not possible to differentiate whether the ad is displayed in india or outside india and advertiser is from india or outside india due to use of software worldwide

    can i claim exemption under export of services rules.

    please clarify whether i am liable to pay service tax
  2. rudrabose

    rudrabose Active Member

    As it is not possible to differentiate whether the ad is being displayed in India or outside India and both the ad publisher as well as the advertiser are based in India - therefore service tax would be levied on mobile ads.
  3. HONEY

    HONEY New Member

    we develop android software and integrate it with google add software.
    on the other hand, after integeration , google add software automatically display add in my software and we earn cos per click.
    our earning is in dollar and received from google admob inc, usa. .

    i want to clarify that on the opposite side advertiser use google ad word and google start charging service tax from advertiser from 01.10.2014 in google adword on the same add displayed in my software but difficult to differentiate whether the advertiser is from india or outside india and display of add in india or outside india. you know that android software are used worldwide
  4. rudrabose

    rudrabose Active Member

    Google Adsense recently announced the following:-

    1. That they would be making all payments to Indian Publishers from their Bangalore Office.

    2. All Ad Sense publishers have been sent a mailed that Service Tax is applicable from 1st Oct 2014.

    In case you are receiving payments from Adsense - Service Tax would be applicable to you as well.

    In case it is some other product of Google, it would be better if you could check directly with them.
  5. HONEY

    HONEY New Member

    my matter is not much complicated but why nobody able to answer.
    can anybody reply correctly or mobile number of service tax consultant expert in these type of cases.
  6. Parul_Gupta

    Parul_Gupta Active Member

    Dear @HONEY

    Google is just an advertising agent in this case. In such a case, the location of the Advertiser is also important.

    Is it possible for you to segragate how many visitors were from India and how many from outside India and how many ads were delivered from Indian Advertisers and How many from International Advertisers??
  7. HONEY

    HONEY New Member

    Impossible to segregate.
    Already mentioned in my query and reply section.
    Akansha mam please read my entire problem and try to solve it.
    it is basically a integeration of my android software and google ad software.
    Google ad software automatically pick ad from adword and display in my software as regular function.
  8. Parul_Gupta

    Parul_Gupta Active Member

    1. When you yourself are not able to segragade and bifurcate the ads that are from Indian Advertisers to Indian Audience and from Intl Advertisers to Intl. Audience, then how can you expect your CA to do it?

    The Bifurcated Data is the 1st thing which your CA will ask. Your CA will only process your returns based on the data given by you.

    2. There is still lack of clarity from the Govt. on how to handle such cases. Such confusions are there in the minds of all Ad publishers as their is no clarity from the Govt.

    So either you will have to give your CA the Details by bifurcating the Advertisers into Indian and Intl. or the Govt will have to give more clarity in this regard.
    Last edited: Oct 4, 2014
    Marcus likes this.
  9. Marcus

    Marcus New Member

    Hi Akanksha,

    Google is already collecting service tax from Indian advertisers.

    • So should publishers still pay service tax? Wouldn't that be double taxation?
    • Do we have to pay service tax for advertisements from foreign advertisers? Wouldn't that come under export?
  10. Parul_Gupta

    Parul_Gupta Active Member

    Dear @Marcus
    1. As Google is already charging Service Tax from Advertisers, there is a possibility that it may pay Service Tax to publishers as well and then publishers would only be required to collect from Google and pay to Govt. (waiting for more clarity from Google Adsense in this regard)
    2. No need to pay tax on Ads received directly from Foreign Advertisers.
    Marcus likes this.
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