Taxation on google adsense/admob income for app development

This query is : Resolved

Student (Querist)
Follow

27 June 2023 Hi, I develop mobile apps and submit them in the google playstore thus my annual turnover becomes around 20-22 lakh. The income is fully from google admob (adsense singapore) ads showed inside the apps which are downloadable from playstore. Now for this income which tax system applies, presumptive 44ad/44ada or anything else? Also do I need to pay gst ?
Please expert insights are appreciated.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

27 June 2023 1. Sec. 44ADA it act
2. GST chargeable under RCM, unless google charges under forward charge.

Student

Student (Querist)
Follow

27 June 2023 Dear sir, thank you for the quick reply. I want to say that,
1. There is no professional service given. I am not paid for app development (sale/freelance etc) rather the apps show ads which make the earning, thus shouldn't it be considered business income, 44 ad?
2. Google shows the ads to the viewer and charges gst from the advertisers for the same. Those ad revenue is shared to us by google adsense. Also the supplier of service (google adsense) is based on singapore, is it not an export of service and thus considered zero rated supply. Please clarify.

Upgrade to CAclubindia Pro. Subscribe Now!

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

27 June 2023 Yes, you may opt for sec. 44AD, but it is trivial issue. Better to declare the income under ITR 3 with actual expenses deducted from the income. No GST on such income charged.

Message likes : 1 times

Student

Student (Querist)
Follow

27 June 2023 Thank you sir for your valuable insights.

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

27 June 2023 You are welcome.