Tax

Hi Rohit,

Thanks for writing. Let me divide the answer into two parts:

1. GST:

If your Gross Turnover is > 20 Lakhs for services and >40 Lakhs for Goods, you have to file GST returns. However, no tax will be applicable since your revenue is through 100% exports. Hence if you have filed NIL returns showing these sales in your return as Zero Rated, you have complied with this requirement

2. Income Tax:

You will be liable to pay income tax on the profit earned based on your slab rate. Assuming that the figures mentioned by you are net profit after deducting all expenses and there are no deductions (80C for investments, 80D for mediclaim, etc.), your tax liability will be Rs. 179400 (breakup provided below) and you will have file your income tax return on income tax E-filing website

Amount of income (Rs.)

Slab Rate

Applicable Tax (Rs.)

250000

0

0

250000

5%

12500

500000

20%

100000

200000

30%

60000

Total

1200000

172500

Cess

4%

6900

Total Tax to be paid

179400

Apart from this, there will be penalty for delay in advance tax payment as well which will depend upon the date on which you file your IT return. Provisions related to Advance Tax are as follows:

* If your total tax liability is Rs 10,000 or more in a financial year you have to pay advance tax. Advance tax applies to all taxpayers, salaried, freelancers, and businesses

* Advance Tax Payment due dates (note that % mentioned are cumulative percentages which should be multiplied by total tax payable) :

- On or before 15th June: 15% of Advance tax

- On or before 15th September: 45% of Advance tax less tax already paid

- On or before 15th December: 75% of Advance tax less tax already paid

- On or before 15th March: 100% of Advance tax less tax already paid

* If you do not pay 90% of the tax payable before the end of the fiscal year, then the simple interest of 1% per month on Tax dues is applicable till the amount is paid

Regards

Firstly, you cannot file NIL gst return. You dont need to pay gst but you need to provide details of your export of services in gst return. I hope you have taken LuT.

Coming to your questions:

1. Yes, you are required to pay income tax since you are a resident Indian.

2. You need to pay income tax on TIN -NSDL website and file income tax return. We can help you in paying taxes and filing return.

3. We need to have discussion on your expenses etc to determine the tax liability.

Hello,

Regarding GST, you must have submitted LUT for export without payment of GST and declared such supplies under Zero Rates supplies in your GST returns.

Regarding Income Tax,

1. Yes, you would be liable for income tax.

2. For income tax, the income tax's website tin-nsdl. 

3. You would be liable for income tax as per slab rates on your net income after deducting your business expenses.

I hope this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Your service is considered as export of service so you should applied for LUT otherwise you have to pay GST and then claim refund. for more clarity contact any nearest CA.

You are an Indian resident and you have earned income and hence you have to pay tax in India. Paying income tax in India has nothing to do with having indian customer.

GST is separate and Income tax is separate.

I think you must get a phone consultation to understand all this in a better manner.

I need to know the Income earned between April 2019 to march 2020 to calculate your tax.

I would strongly recommend you to book phone consultation with me so that we can calculate your tax.

As you are providing such services I doubt why are you filing Nil GST return.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Business 1 will not be liable to GST as goods have not entered India. The profit of the business and sale value less the cost of building up the business will be the income for income tax purpose.

Business 2- This will also not be liable to GST as it is covered in export service but the value is to be shown in GST returns as export of service. You should file an LUT for the export of services.  The revenue of 5 lakhs will be considered as income in Income Tax act

Dear Sir,

Hope you are doing well !!

For Export supplies, two options are available either you can get LUT and supply without IGST or you can supply with IGST and later claim a refund of the tax paid. 

1. Yes, a resident will be charged to tax in India on his global income i.e. income earned in India as well as income earned outside India.

2.To pay taxes online, login to http://www.tin-nsdl.com > Services > e-payment : Pay Taxes Online on the tab "e-pay taxes" provided on the said website & ‘Proceed’ under Challan 280 option.

3.We may discuss the same over call.

It is advisable to take a phone consultation for detailed discussion.

Hi

Provision related to income tax will be applicable.

Please have a phone consultation for detail discussion.