Am from India and I've created an online platform(a webbased application) where ADVERTISERS can list ads(or campaigns) and PUBLISHERS can use this ads and promote them.
So when ADVERTISERS pays me, I would be giving 90% of this money to the PUBLISHERS (based on the stats like how many views, clicks, etc.). The remaining 10% would be the my profit.
Both the ADVERTISERS and PUBLISHERS would be foreign companies/individuals. So am receiving(from ADVERTISERS) the payment from outside India and am sending(to PUBLISHERS) the payment to outside India also. But the payments are received in my Indian bank account and send(abroad) from the same account also.
My questions are:
- Will I have to pay GST?
- Do I have to collect TDS when I send money to the PUBLISHERS ?
I enquired two local Chartered Accountants. And one guy is saying that, since the payment is received from outside India and payment is paid to outside India also then no need to pay GST. Only have to worry about the Income Tax. But if you are paying to Indian PUBLISHERS then have to pay the GST(IGST or CGST depending the state).
But another guy said, I have to pay 18% tax when receiving and sending payments, apart from that I have to collect 30.9% TDS when sending payment to the PUBLISHERS(outside India).
So am confused. If what the second guy said is true, then it would be a big loss for me! Because only a small portion is my actual profit. And inorder to pay the taxes, I have to pay from my pockets!
The thing is, I can't charge extra(as tax) when I receive the money from the ADVERTISERS. They won't pay me extra. And I can't deduct any amount when I send the payment to my PUBLISHERS. Because they would become unhappy and they won't continue with my service.
Kindly throw some ideas on my desperate condition.