44ab audit

This query is : Resolved

JINESH J SHAH (Querist)
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10 December 2013 Mr. V is maintaining a blog/websites on the Google Platform. He looks after updating the contents of the blog/websites . For every click on the website/blog he is paid per click in foreign currency.

u/s 44AB of the Income Tax Act, would this type of activity be treated as business or as a profession to determine whether audit needs to be done or not?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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10 December 2013 Yes since he is providing maintainance service from india its taxable in india

if gross rev exceeds rs 25 lakhs then 44AB audit is applicable.

JINESH J SHAH

JINESH J SHAH (Querist)
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10 December 2013 Please note he owns the website. He is not providing any maintenance services. He has to keep on improving the content to make his website attractive. Whether such an activity will be business or profession

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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10 December 2013 Your opening words in ur inital querry was
Mr V is maintaining....so i assumed he is providing maintainence ser...

however if he own then there is no direct sale of goods or product however since he owns blog he is providing platform for sellers to adv their product and buyers buy online then he is rec payment on mouse click basis so basically he is getting paid for facilitating buyers and sellers hence in my view he is providing service as professional and getting paid for it hence rs 25 lakhs for professional is applicale.

JINESH J SHAH

JINESH J SHAH (Querist)
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10 December 2013 He owns a website say which gives informations about movies etc.
He does this on google's platform and in a way he operates for google.

Anybody advertising on the website makes the payment to google and not to Mr. V.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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10 December 2013 you earlier said he owns the blog so the owner must have rec the payment and the ans was given on this assumption.

however in this scene its kust like commision rec abd the base is on per mouse click so basically he isnt selling any goods and getting paid for operation on google.

my ans remains same.