kemosabe Posted June 15, 2015 Report Share Posted June 15, 2015 Do you download software, songs, or movies from the Internet from foreign websites, making payments through Netbanking or credit card? Do you buy goods such as books from global websites, such as eBay Global EasyBuy or Amazon.com? These transactions, along with many others, could now be financially hazardous for you, beginning 1 June 2015. A couple of amendments made in the last budget, which come into effect from 1 June 2015, are likely to cause this problem. Tax has always been required to be deducted at source from payments to non-residents, if the amounts paid represent income of the non-resident chargeable to tax in India. This tax deduction provision applies not only to a person carrying on business, but to every individual, even if she is a salaried employee. Normally, purchase of goods is not taxable, while purchase of software, songs or movies is taxable since an amendment to the law in 2012. Practically, however, since the amounts paid for such downloads is small, most individuals did not bother to deduct tax at source from such payments (or did not do so out of ignorance about such provisions). Further, the tax, if any, would practically have to be borne by the purchaser, since she would be unable to recover it from the non-resident payee, as the website would not process her transaction unless full payment is made. The first amendment is that details of such payments to non-residents are required to be filed online on the income tax department’s website, irrespective of whether the payments are taxable or not. Earlier, the requirement of online furnishing of details was only required if the payment was taxable. Therefore, online furnishing of details is now effectively extended to payments for purchase of books or other goods from foreign vendors. If the amount of payment exceeds Rs.50,000, or the total payments in the financial year to one entity exceed Rs.2.50 lakh, a chartered accountant’s certificate also has to be obtained, certifying the tax deductible (even if there is no tax involved). The second amendment is the introduction of a penalty of Rs.1 lakh for not furnishing such details online. The penalty is a flat amount, irrespective of the amount of tax involved. So, if you purchase a software for Rs.6,000, and were required to have deducted tax of Rs.600, besides the tax of Rs.600 that can be recovered from you, a penalty of Rs.1 lakh can be levied on you for not filing the details of the payment online on the tax department’s website. While there is a provision for waiver of penalty if there is a reasonable cause, ignorance of law cannot be regarded as a reasonable cause. The income tax rules do provide some exemptions, though limited. Payments for business or personal travel expenses (which would include online booking of hotels or rail tickets) are excluded, as are remittances for investments abroad in shares, debt securities or real estate, maintenance of close relatives, education expenses, gifts and donations. These exemptions, however, are few, and still leave a large number of transactions subject to reporting. TL DR : From 01st June all the payments to Non residents need to report. 15CA and 15CB is required to file for any payment/purchase made to foreign seller (pay the tax to Government of India) or a penalty of Rs.1 lakh can be levied on you for not filing the details of the payment online on the tax department’s website. While there is a provision for waiver of penalty if there is a reasonable cause, ignorance of law cannot be regarded as a reasonable cause. The income tax rules do provide some exemptions, though limited. Payments for business or personal travel expenses (which would include online booking of hotels or rail tickets) are excluded, as are remittances for investments abroad in shares, debt securities or real estate, maintenance of close relatives, education expenses, gifts and donations. These exemptions, however, are few, and still leave a large number of transactions subject to reporting. Source Link to comment Share on other sites More sharing options...
KyoyaHibari Posted June 15, 2015 Report Share Posted June 15, 2015 Link to comment Share on other sites More sharing options...
VR46 Posted June 15, 2015 Report Share Posted June 15, 2015 achhe din aa gaye Link to comment Share on other sites More sharing options...
PhantomShade Posted June 15, 2015 Report Share Posted June 15, 2015 so how will i give GabeN my moneys now ? :| Link to comment Share on other sites More sharing options...
sameuun Posted June 15, 2015 Report Share Posted June 15, 2015 thus they known as ache din, Link to comment Share on other sites More sharing options...
Ph3N0M Posted June 15, 2015 Report Share Posted June 15, 2015 Wtf is this gibberish? Link to comment Share on other sites More sharing options...
kemosabe Posted June 15, 2015 Author Report Share Posted June 15, 2015 Wtf is this gibberish? the f**** is if you dont pay tax for your online game purchase from steam/amazon.com/ebay.com or other foreign websites, you have to pay tax to Gov of India or else ready to pay penalty of 1,00,000 INR (applied to all Indian Residents) Link to comment Share on other sites More sharing options...
PhantomShade Posted June 15, 2015 Report Share Posted June 15, 2015 the f**** is if you dont pay tax for your online game purchase from steam/amazon.com/ebay.com or other foreign websites, you have to pay tax to Gov of India or else ready to pay penalty of 1,00,000 INR (applied to all Indian Residents) Par mudi ko pata kaise chalega Link to comment Share on other sites More sharing options...
kemosabe Posted June 15, 2015 Author Report Share Posted June 15, 2015 Par mudi ko pata kaise chalega online transaction done by credit card/debit card/net banking can be tracked if government want to be. The question is do you want to take the risk which might lead to penalty of flat Rs. 1,00,000? If you have 9-10 months to think about it. Link to comment Share on other sites More sharing options...
Kazekage Gaara Posted June 15, 2015 Report Share Posted June 15, 2015 This is f**king bullshit. Kya chutiyagiri hai yaar .... Link to comment Share on other sites More sharing options...
PhantomShade Posted June 15, 2015 Report Share Posted June 15, 2015 online transaction done by credit card/debit card/net banking can be tracked if government want to be. The question is do you want to take the risk which might lead to penalty of flat Rs. 1,00,000? If you have 9-10 months to think about it. patanjali aur Temples pe tax laga na mudi,mere games ke picche kyu pad raha h tu Link to comment Share on other sites More sharing options...
ALPHA17 Posted June 15, 2015 Report Share Posted June 15, 2015 Wtf is this gibberish? This is f**king bullshit. Kya chutiyagiri hai yaar .... This is #AccheDin Link to comment Share on other sites More sharing options...
TAZ Posted June 15, 2015 Report Share Posted June 15, 2015 The f**k is this!!! So long story short, If i buy anything (Shoes-Games-Clothes) from my indian CC on any US website i will have to file returns ?!?!?! There goes all the things which people used to order and waited for some relative to bring them to india.. Link to comment Share on other sites More sharing options...
Snake Posted June 15, 2015 Report Share Posted June 15, 2015 Can anyone explain this in layman's terms, what it to people like us? Link to comment Share on other sites More sharing options...
TAZ Posted June 15, 2015 Report Share Posted June 15, 2015 I think this is done so as to stop Imports/ People buying products from abroad, As CC is the only way you can buy stuff from abroad.. WAIT, THIS APPLIES TO US PSN STORE ALSO ??!?!??!?! Link to comment Share on other sites More sharing options...
Nr.Draca47 Posted June 15, 2015 Report Share Posted June 15, 2015 Can anyone explain this in layman's terms, what it to people like us? If you buy a game from Steam, you will have to pay Tax yourself. Steam wont deduct tax, you will have pay the taxes....manually...like getting your lazy butt outta your couch and pay Tax. Now, How to pay Tax? Link to comment Share on other sites More sharing options...
KyoyaHibari Posted June 15, 2015 Report Share Posted June 15, 2015 Can anyone explain this in layman's terms, what it to people like us? If you make any purchase which involves $ to inr conversion, you will have to file returns- some tax sh*t everyone does once per year. I only had to do it once and I took help from agents to do it for me, so I'm not sure how it works. But itl be pain in the a*s to do this returns thing. Link to comment Share on other sites More sharing options...
Snake Posted June 15, 2015 Report Share Posted June 15, 2015 If you make any purchase which involves $ to inr conversion, you will have to file returns- some tax sh*t everyone does once per year. I only had to do it once and I took help from agents to do it for me, so I'm not sure how it works. But itl be pain in the a*s to do this returns thing. Link to comment Share on other sites More sharing options...
PhantomShade Posted June 15, 2015 Report Share Posted June 15, 2015 yeh hota hai matlab acche din ka bc Link to comment Share on other sites More sharing options...
roun90 Posted June 16, 2015 Report Share Posted June 16, 2015 What about purchases from Steam? Say you buy games for $5 on summer sale, you have to file a separate form altogether or pay 1 lakh? What about the TIN no. etc. for Steam? Also, what about other small value transactions from sites? File a form for purchase from G2A or GMG? Can someone please clarify? This law is complete BS. How are they expecting to track such small transactions from individuals with such a high population? Link to comment Share on other sites More sharing options...
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