If you have more than 2.5 lakh per annum in your bank account than file ITR for Income tax. Individuals have to pay tax as per their slabs in India.
GST: If your receipts are more than 20 lakhs (It’s now 40 lakh) in one financial year then you need to file GST for both international and domestic transaction. If mid of the year then you need to register immediately for GST. Always seek advice from Certified CA.
GST has many benefits. For example: If you are buying laptop for your company of Rs.1 lakh and after GST refund you will save Rs.18,000 here.
For export of service file LOU (letter of understanding). The examples of export service like selling domain, youtube, google adsense, etc.. but need to proof your export or otherwise pay tax on it.
In Google Adsense only receiving money so no GST filing require only need to file Income tax on time.
If you are buying service outside India then you need to pay GST immediately
The examples for import of service : buy domain and hosting, themes, plugins, etc.. You need to pay pay gst on purchase i.e. import of service.
When you add GST number in the domain registrar companies like Godaddy while buying domain and hosting then the liability to file GST is on you know.
As when you add GST number then the transactions between you and Godaddy become B2B transaction. For B2B transaction you need to file GST. If you are buying domain worth more than 30,000 then you need to deduct 2% TDS and pay TDS amount to government.
Make sure to create Indian Facebook Ad account. If you open US FB ads account then equivalent levy is charged from your pockets.
For Indian Facebook ads account register for TDS and pay for it and give TDS certificate to FB billing team for TDS refund. When you are paying to foreign company like FB ads then u need to pay GST on it, as it comes under import of service therefore no refund facility.
In case of Google, every quarter you need to generate TDS certificate and give this certificate to googl’s billing team.
Make sure to use any online accounting software like Zohobooks to put all your purchase and your invoice their, to avoid any inaccuracies and inconvenience. It is highly recommended to add all your invoices in one folder.
GST refund facility is only for export of service not for import of service. But for export business their is more paperwork. RCM and GST on import of service need to pay on time. Freelancer in India also need to file GST.
You need to collect FIRC (Foreign Inward Remittance Certificate). In case you are using Paypal, then you can collect FIRC from citibank. They only charge around Rs.100 per certificate. If you are using Payoneer , then it’s great as they directly give you this FIRC certificate.
If you haven’t registered your company yet than do it as early as possible. We have created detailed guide on best suited business structure for small startups. It will help you for registering your company. Changing the company structure is huge process. So choose it wisely. That’s why we have created this detailed guide for company registration for startups.
Make sure to keep your credit history clean and non-shady turnovder. As credit score and valuation of company will help you to get loans for your Business.