tax on online payment registeration for event in abroad
This query is : Resolved
13 May 2011
sir, we are comany and doing event in abroad, indivudal, company want to do payment online for Registeration . If there any tax liability ? if yes please explain. if any benifits we can take it ? plese help me in urgently. (mahesh)
14 May 2011
What I could make out from your query is that Indian Company is doing event abroad.
What else I could not make out, kindly clarify the real question.
What else I could not make out, kindly clarify the real question.
16 May 2011
this is indian company and organige a summit in abroad. we would receive on line payment for registeration so i want to know that it would come in tax impleation. mahesh)
16 May 2011
Please tell the country where the summit is going to be held.
There is no issue on the Indian Income Tax liability as any income earned shall be taxable.
Regards the foreign country it shall also like to tax the income earned in their country.
Al;so the payments made outside India for the summit shall also be liable to TDS u/s 195.
Anuj
0-9810106211
There is no issue on the Indian Income Tax liability as any income earned shall be taxable.
Regards the foreign country it shall also like to tax the income earned in their country.
Al;so the payments made outside India for the summit shall also be liable to TDS u/s 195.
Anuj
0-9810106211
18 May 2011
sir,
event country is japan. we will receive payment in indian bank account for registeration through online. please help me more regarding this.
mahesh
event country is japan. we will receive payment in indian bank account for registeration through online. please help me more regarding this.
mahesh
26 July 2025
Dear Mahesh,
Thank you for the detailed clarification.
Based on your query, here is a clear explanation regarding the tax implications of receiving online payments for an event organized abroad (in Japan) by an Indian company.
✅ Scenario:
You are an Indian company.
You are organizing an event (summit) in Japan.
Participants (individuals/companies) from different countries will pay registration fees online, and you will receive the payments in your Indian bank account.
📌 1. Income Tax in India:
Yes, this income is taxable in India.
Why?
You are a resident Indian entity, so global income is taxable under Indian tax law.
Even though the event is outside India, the business operations and bank account are in India, so the income is deemed to accrue or arise in India.
📎 Relevant Section: Section 5 of the Income Tax Act (Scope of Total Income)
👉 Action:
Include all registration income in your business income while filing your Income Tax Return.
You can claim expenses incurred for the event (in Japan) against this income (flights, hotel, venue costs, marketing, etc.), to reduce tax liability.
📌 2. Tax Implication in Japan:
Japan may also seek to tax the income if:
The event is physically held there,
Tickets are sold to Japanese residents,
Or local business is conducted there.
This creates a situation of double taxation.
👉 Action:
Check if a Permanent Establishment (PE) is created in Japan (if you rent space, hire people, etc.).
If taxed in Japan, you may be eligible to claim Foreign Tax Credit (FTC) in India under the India–Japan Double Taxation Avoidance Agreement (DTAA).
📌 3. TDS on Payments Made Outside India:
If you are making payments to vendors in Japan (e.g., venue, event management, hotels, speakers), you may need to deduct TDS under Section 195 of the Indian Income Tax Act.
👉 Action:
Check whether payments to foreign vendors attract TDS.
If the income is not chargeable in India (e.g., service provided entirely outside India), you may apply for a Nil deduction certificate.
📌 4. GST Implications in India:
As of current GST law (as of 2025):
If you are receiving payment for services (event registration), and the place of supply is outside India, this may qualify as export of service.
Export of service is zero-rated under GST.
👉 Action:
Ensure all 5 conditions of export of service are met.
If qualified, no GST is payable, and you can claim refund of input tax credit (ITC).
✅ Summary of Key Actions:
Area Action
Income Tax (India) Include registration income in return, claim expenses
Income Tax (Japan) Consult local tax advisor, assess PE and local tax obligations
TDS (Section 195) Deduct tax on payments to foreign vendors unless exempt
GST (India) Check export of service criteria, consider refund of ITC
Double Taxation Claim FTC under DTAA if taxed in Japan
Thank you for the detailed clarification.
Based on your query, here is a clear explanation regarding the tax implications of receiving online payments for an event organized abroad (in Japan) by an Indian company.
✅ Scenario:
You are an Indian company.
You are organizing an event (summit) in Japan.
Participants (individuals/companies) from different countries will pay registration fees online, and you will receive the payments in your Indian bank account.
📌 1. Income Tax in India:
Yes, this income is taxable in India.
Why?
You are a resident Indian entity, so global income is taxable under Indian tax law.
Even though the event is outside India, the business operations and bank account are in India, so the income is deemed to accrue or arise in India.
📎 Relevant Section: Section 5 of the Income Tax Act (Scope of Total Income)
👉 Action:
Include all registration income in your business income while filing your Income Tax Return.
You can claim expenses incurred for the event (in Japan) against this income (flights, hotel, venue costs, marketing, etc.), to reduce tax liability.
📌 2. Tax Implication in Japan:
Japan may also seek to tax the income if:
The event is physically held there,
Tickets are sold to Japanese residents,
Or local business is conducted there.
This creates a situation of double taxation.
👉 Action:
Check if a Permanent Establishment (PE) is created in Japan (if you rent space, hire people, etc.).
If taxed in Japan, you may be eligible to claim Foreign Tax Credit (FTC) in India under the India–Japan Double Taxation Avoidance Agreement (DTAA).
📌 3. TDS on Payments Made Outside India:
If you are making payments to vendors in Japan (e.g., venue, event management, hotels, speakers), you may need to deduct TDS under Section 195 of the Indian Income Tax Act.
👉 Action:
Check whether payments to foreign vendors attract TDS.
If the income is not chargeable in India (e.g., service provided entirely outside India), you may apply for a Nil deduction certificate.
📌 4. GST Implications in India:
As of current GST law (as of 2025):
If you are receiving payment for services (event registration), and the place of supply is outside India, this may qualify as export of service.
Export of service is zero-rated under GST.
👉 Action:
Ensure all 5 conditions of export of service are met.
If qualified, no GST is payable, and you can claim refund of input tax credit (ITC).
✅ Summary of Key Actions:
Area Action
Income Tax (India) Include registration income in return, claim expenses
Income Tax (Japan) Consult local tax advisor, assess PE and local tax obligations
TDS (Section 195) Deduct tax on payments to foreign vendors unless exempt
GST (India) Check export of service criteria, consider refund of ITC
Double Taxation Claim FTC under DTAA if taxed in Japan
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