Is membership fees taxable in India?
Membership or admission fee collected by clubs cannot be termed as supply of service and therefore is not liable to goods and services tax (GST), the Maharashtra Appellate Authority of Advance Ruling (AAAR) has said.
Is tds applicable on online subscription charges?
Any payment covered under this section shall be subject to TDS at the rate of 10%. From 1 April 2020, the payment of fees for technical service shall be subject to TDS at the rate of 2%.
How much is tax in India now?
When it comes to taxes, there are two types of taxes in India – Direct and Indirect tax. The direct tax includes income tax, gift tax, capital gain tax, etc while indirect tax includes value-added tax, service tax, Good and Service taxm, customs duty, etc.
What is the income tax rule in India?
STORY OUTLINE
| Old tax regime (With deductions and exemptions) | Total income | New tax regime (without deductions and exemptions) |
|---|---|---|
| Nil | From Rs 2,50,001 to Rs 5 lakh | 5% |
| 20% | From Rs 5,00,001 to Rs 7.5 lakh | 10% |
| 20% | From Rs 7,50,001 to Rs 10 lakh | 15% |
| 30% | From Rs 10,00,001 to Rs 12.5 lakh | 20% |
Can we claim GST on membership fees?
No ITC will be allowed on any membership fees for gyms, clubs, etc.
Are subscription fees taxable?
Subscription products are an indirect transaction. The customer pays a subscription fee that covers the cost of goods. The thing to be mindful of is that the products are subject to sales tax. So you have to tax the goods through the monthly subscription fee.
What is a monthly subscription fee?
Subscription Fee means the amount the Customer is required to pay for the Subscription to the Product/Service, which may be billed monthly or annually. Prices for each Order is fixed at the time the Subscription is first placed and apply throughout the Term.
Are taxes high in India?
While India’s highest tax rate is 42.74%, Canada’s highest rate is 54.0%. The U.S.A.: While the U.S.A. has the second highest tax rate for the highest earners, at 44.7%, it is low for those earning between ₹1 crore to ₹2 crores. Those individuals are subjected to a tax rate of merely 28.2%, which is lower than India’s.
Do you pay GST on subscriptions?
This commonly occurs when selling subscription services to consumers. For example, if you received payment for a 12-month subscription in September 2016, GST will apply to the portion of the sale from 1 July 2017.
How are online subscription fees taxed in India?
On this basis, the AO decided that the subscription fees paid by the Indian customers to the Taxpayer should be taxed in India at the rate of 10% as per the provisions of the Treaty. This was challenged by the Taxpayer before the Dispute Resolution Panel (” DRP “) which decided in favour of the revenue.
How much is annual GST subscription in India?
Annual Subscription – Goods and Services Tax (GST) Package Details (inclusions): Price 5700 + GST 1026
Which is the best website for direct tax?
Direct Tax Online is an excellent case law repository, with easy navigation and multiple search options. Moreover, add ons like commentaries, DTAA comparison tool, notifications, circulars at one place makes it the best. In a nutshell, it’s a complete online content solution for Tax professionals. V.N. Purohit & Co
Which is the best subscription plan in India?
Annual Subscription – Direct Tax Package Package Details (inclusions): Price 10200 + GST 1836 12036 Pay: 9000 + GST 1620 10620 Annual Subscription – Indirect Tax Package Package Details (inclusions): Price 10200 + GST 1836 12036 Pay: 9000 + GST 1620 10620
