• Guidance: online blogging & affiliate marketing

Respected Vivek Sir 

I am Prasad from Andhra Pradesh, India.
I would like to start my career with Guidance blogging and Online AFFILIATE MARKETING for reputed sites like Amazon, Etc...
Which type of precautious should I take to avoid LEGAL issues, from Indian Government.
My Questions (Requirements):-
1. Which type of bank account open?
2. Which type of PayPal/Payoneer account open?
3. What about Itax return?
4. Which rules I follow?
5. And so on...

Complete Guide/ Procedure please

Regards
Prasad K
Asked 2 years ago in Income Tax

Dear Prasad,

1) If you are working as individual i.e. as sole proprietorship, you need to open current account with bank.

2) For working with e-commerce websites, GST registration is complusory irrespective of turnover.

3) Apply for Individual PAN Card.

4) You can choose any gateway as per your option.

5) Whatever amount you will receive that will be inclusive of GST. You need to do reverse calculation for filing of GST return.

6) Under income tax, advance tax liability arises if your tax liability will be more than RS.10,000 in a F.Y.

Thanks

Vivek Kumar Arora
CA, Delhi
3800 Answers
242 Consultations

5.0 on 5.0

PAN and GST are must. Though you would not pay GST if your client is Amazon India but Amazon US, and the payments are being made in dollars. But filing 37 GST returns in a yr is a requirement. benefit is you can claim refund of GST paid on all business expenses.

Income tax would be payable based on your income. Sec 44ADA can be used if your receipts upto Rs 50 Lakhs a month.

You would best know whether paypal or payoneer should be used. No difference when it comes to compliances.

Amit Kumar Narula
CA, Bangalore
59 Answers
1 Consultation

5.0 on 5.0

Hi Prasad

As asked to Mr. Vivek and partially answered correct.

As far as GST is concerned, your services shall be classified as OIDAR services. Under OIDAR services, you would need to register under GST only once your turnover exceeds Rs. 20 lacs. Post registration, depending upon your services, if the services are classified as exports, you can apply for Letter of Undertaking and export without payment of GST.

No GST till your turnover does not exceed Rs. 20 lacs.

Further, some more points to remember:

1. Maintain record of all transactions entered into, be it expense or income.

2. If payments are received in foreign currency, maintain FIRC copies of all foreign remittances.

Lakshita Bhandari
CA, Mumbai
5245 Answers
351 Consultations

5.0 on 5.0

Hello,

Totally depends on the type of organisation you want to start with - firm/ partnership/ llp/ pvt ltd co etc.

Second question is your expected turnover ....

If you file your returns and pay your taxes on time. There is nothing to worry about.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hi Prasad,

1. You can open current account or saving account whatever is easy for you.

2. No restrictions

3. You will have to file income tax return annually on 31 July of next year. You will also need to obtain PAN, if you don't have one.

4. Dint get your question

5.apart from the above, you need to take GST registration as well, once your turnover exceeds 20 lakhs.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi,

1.Its preferable to have current account for business purpose ,But initially you can operate with savings account also.

2. Pay pal or payoneer- totally depends on your choice.

3.Income tax is to be paid on all your earnings,return to be filled annually.

4.GST registration required when turnover cross threshold of 20 lacs.

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Hi,

1. Preferably current account.

2. There is no restriction. It is upto you.

3. Income tax to be filed annually on all your income.

4. GST registration mandatory once your turnover cross threshold of 20 lacs.

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1428 Answers
19 Consultations

4.8 on 5.0

1) Current Account would do.

2) Open Paypal account.

3) Ensure your Income comes in only single account.

4) Above T/O Rs 20 lac GST is applicable, keep a tab on that.

5) financing part is imp. Get your IT return for FY 2017-18 filed even if you have no income. It is must for obtaining loan.

Chirag Maru
CA, Raipur
193 Answers

5.0 on 5.0

Hi Prasad,

Hope you are doing well !

Please find below the replies :

1. You must open current account as Current Account is generally for business/Start up purposes and banks pay no interest on the balances held therein but such type of accounts can be helpful to have Overdraft Limits against security or can have a clean (i.e. without any security) overdraft limit. There is no binding of number of transactions in such type of accounts. .

2. Whatever you want to open-PayPal/Payoneer account as such no restrictions.

3. Income Tax Returns to be filled annually depends on your status i.e.

The due dates to file income tax return can be divided into two parts.

(a.) Individuals, HUF, BOI, AOP. (Taxpayers with no audit requirement.) - 31st July of the relevant AY

(b) Company, Taxpayers whose accounts need to be Audited, Working partner (whose firm’s books need to be

Audited)-30th September of the relevant AY

4. Please explain further as didn't get this point.

Including above, you need to know followings things also:

(a) Apply for GST registration once your turnover reaches above 20 Lakh.

(b) Maintain records of all transactions for domestic as well as foreign transactions

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
4896 Answers
91 Consultations

5.0 on 5.0

Hi

if will be receiving from a company/person who are located abroad then your services will be treated as export of services then you should apply for GST registration and then have to file Letter of undertaking (LUT) on GSTN.

I guess there no specific requirements to open an bank account.

you have to pay taxes on such income, you can file ITR and pay taxes under section 44ADA.

Take GST registration first before releasing any payment

Varun Chawla
CA, Ghaziabad
74 Answers
1 Consultation

5.0 on 5.0

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