• Hello and Welcome to HiFiVision.com - an online community for the home entertainment and tech enthusiasts!

    If you would like to ask a question, participate in a discussion and view attachments please Register yourself.

Rs 1 lakh fine if you dont declare music bought from phoren man

Audiolab 6000CDT Dedicated CD Transport

sound_cycle

Well-Known Member
Joined
Jan 12, 2014
Messages
1,123
Points
83
Location
Hyderabad
Are you making a payment to a non-resident? - Livemint

Do you download software, songs, or movies from the Internet from foreign websites, making payments through Netbanking or credit card? Do you buy goods such as books from global websites, such as eBay Global EasyBuy or Amazon.com? These transactions, along with many others, could now be financially hazardous for you, beginning 1 June 2015. A couple of amendments made in the last budget, which come into effect from 1 June 2015, are likely to cause this problem.

The first amendment is that details of such payments to non-residents are required to be filed online on the income tax departments website, irrespective of whether the payments are taxable or not. Earlier, the requirement of online furnishing of details was only required if the payment was taxable. Therefore, online furnishing of details is now effectively extended to payments for purchase of books or other goods from foreign vendors. If the amount of payment exceeds Rs.50,000, or the total payments in the financial year to one entity exceed Rs.2.50 lakh, a chartered accountants certificate also has to be obtained, certifying the tax deductible (even if there is no tax involved).

The second amendment is the introduction of a penalty of Rs.1 lakh for not furnishing such details online. The penalty is a flat amount, irrespective of the amount of tax involved.
 

alpha1

Active Member
Joined
Apr 30, 2009
Messages
477
Points
43
Location
Pune
Hmmmm, when I clicked on the thread, I expected a notice from Govt asking people to cough up the Customs duty payment for non material goods and services purchased over the internet (like music and software).

what you have posted is still pretty tame compared to what I was anticipating!
 

sound_cycle

Well-Known Member
Joined
Jan 12, 2014
Messages
1,123
Points
83
Location
Hyderabad
Hmmmm, when I clicked on the thread, I expected a notice from Govt asking people to cough up the Customs duty payment for non material goods and services purchased over the internet (like music and software).

what you have posted is still pretty tame compared to what I was anticipating!

:argue:

" So, if you purchase a software for Rs.6,000, and were required to have deducted tax of Rs.600, besides the tax of Rs.600 that can be recovered from you, a penalty of Rs.1 lakh can be levied on you for not filing the details of the payment online on the tax departments website"

I thought that means i have to keep careful track of the 12 INR per song I buy enter that into a website and then pay 1.2 INR tax per track (at 10%) or else pay 1L INR as fine.

This also applies to the Schiit DAC I was planning to source from the US, I guess. So now it is exchange rate, customs on CIF + 10% TDS

That's pretty hard and bite-y from my PoV

ciao
gr
 

Shivam

Well-Known Member
Joined
Feb 24, 2010
Messages
1,703
Points
113
Location
Uttarakhand
What about purchases on Indian sites like amazon.in ebay.in or flipkart that have items listed in INR and are sold by sellers from other countries (mostly US)? The money we pay, as far as I understand, goes to the Indian site and they later pay to the seller.
 

manniraj

Well-Known Member
Joined
Jun 3, 2011
Messages
2,772
Points
113
Location
Bangalore
What about purchases on Indian sites like amazon.in ebay.in or flipkart that have items listed in INR and are sold by sellers from other countries (mostly US)? The money we pay, as far as I understand, goes to the Indian site and they later pay to the seller.

I think the tax is collected in the price if purchased from Indian sites irrespective of whether the seller is within India or not as the invoice is provided by the seller or Amazon which clearly specifies the tax that has been collected.
 

sound_cycle

Well-Known Member
Joined
Jan 12, 2014
Messages
1,123
Points
83
Location
Hyderabad
What about purchases on Indian sites like amazon.in ebay.in or flipkart that have items listed in INR and are sold by sellers from other countries (mostly US)? The money we pay, as far as I understand, goes to the Indian site and they later pay to the seller.

itunes, amazon.com, dx, cyclestuff are the ones which are not likely to be liable or paying GoI

And it is on the card. Don't declare you pay 1L fine, therefore you pay the 10%.

ciao
gr
 

manniraj

Well-Known Member
Joined
Jun 3, 2011
Messages
2,772
Points
113
Location
Bangalore
I believe that any stuff that you purchase on foreign websites enter the country and the custom duties are applied based on the category. But over this again you have to pay tax is ridiculous. If it is being by-passed by the customs officials then it is not the fault of the customers. This is not applicable for purchases within India as the merchant/sellers have to declare the tax invoice and pay or collect it from the buyers and it is the responsibility of the seller to remit the tax to the government.
 

shibashis

Well-Known Member
Joined
Sep 20, 2012
Messages
1,018
Points
83
Location
Kolkata
I think related to this Borderlinx no longer handles customs clearing and duties on behalf of the customer. I was notified on their site that Borderlinx will do the customs paperwork but the duties will not be collected by the courier, in this case DHL.
This possibly has to do with this stupid new regulation.
 

sidvee

Well-Known Member
Joined
May 14, 2007
Messages
3,105
Points
113
Location
Hyderabad
Not sure if it is related to this but recently lot of my shipments for shop and ship have been very strict. Everytime the delivery guy wants a copy of my license. Also a recent computer based import was charged full 30% duty by fedex. Also I have been paying increased duty on vacuum tubes - full 30%. My impression there is general crackdown on imports regardless if it is $5 or $500 doesn't matter. It is a regressive step IMO hopefuly better sense prevails.
Cheers,
Sid
 
Last edited:

shibashis

Well-Known Member
Joined
Sep 20, 2012
Messages
1,018
Points
83
Location
Kolkata
I think related to this Borderlinx no longer handles customs clearing and duties on behalf of the customer. I was notified on their site that Borderlinx will do the customs paperwork but the duties will not be collected by the courier, in this case DHL.
This possibly has to do with this stupid new regulation.

Sorry I meant to write that duties from now on will be collected by the courier instead of Borderlinx handling on behalf of us.
 

ajay0722

Active Member
Joined
Jul 19, 2012
Messages
251
Points
28
Location
bangalore, india
Does it mean any purchase made through Amazon.com etc should be declared to the income tax portal and a 10% Tax has to be paid on the purchase value...

which law is this, seems very harsh to those who buy stuff online....
Any legal/financial expert can comment on this !!

I just ordered a Audio mixer on 31st may on amazon.com, just escaped by a day it seems :)
 

sound_cycle

Well-Known Member
Joined
Jan 12, 2014
Messages
1,123
Points
83
Location
Hyderabad
Does it mean any purchase made through Amazon.com etc should be declared to the income tax portal and a 10% Tax has to be paid on the purchase value...

From what I know, yes :(

and it will be 20% if they do not have a PAN International Tax Update: Budget POEM 2015

However, foreign/non-resident service providers need to obtain PAN in India to avail of 10% rate else without PAN, their income will still be liable for TDS@ 20% instead of 10%.​

ciao
gr
 

Thad E Ginathom

Well-Known Member
Joined
Oct 11, 2009
Messages
6,381
Points
113
Location
Chennai
Life Just Gets Harder....

It ain't hifi but...

Actually just buying some herb/suppliment stuff from iherb.com, USA (plug: the service is good, and DHL gets the stuff here very quickly. Only thing is to make sure to check local prices and availability before buying, but you probably know that already. Also, you might think all this stuff is crap anyway: a lot of it is :cool:)

Here's from the Shopping-Cart Checkout page.

Please note: India has revised some of its B2C and B2B import regulations and processes.

Once you have placed your order at iherb, you need to upload Know Your Customer (KYC) documents (Government recognized identify and address proof) at the website: www.dhlindia-kyc.com. These documents are required by Customs for shipment clearance. Import clearance cannot start unless Consignees' KYC documents and Authorization Letter (POA) are uploaded by the consignee at the website above.

The types of documents required for Individuals or Companies are:

For Individuals: Consignees KYC documents such as Passport / Voter ID / Drivers License / PAN (Permanent Account Number) and Authorization Letter (POA)
For Companies: Companys IEC (Import & Export Certificate), KYC (Know Your Customer) Documents and Authorization Letter


The email address and mobile phone number you will be using for your iHerb order will be used to access the DHL KYC web portal.

God knows what happens if I want to order a Schiit DAC! :rolleyes:

I have not completed the process tonight, as the PAN card is under the sleeping wife. Let sleeping wives lie!
 

sound_cycle

Well-Known Member
Joined
Jan 12, 2014
Messages
1,123
Points
83
Location
Hyderabad
God knows what happens if I want to order a Schiit DAC! :rolleyes:

I have one sitting in a virtual shopping cart AND people travelling abroad who will lug it back for me and store it in my old room.

I do have the knowledge of how much it would actually entail (customs on cost + CIF + 20% no PAN).

I have a few weeks to agonize, before switching into deep depression over a lost opportunity

ciao
gr
 

anilva

Moderator
Joined
Jan 4, 2009
Messages
1,163
Points
113
Location
Bangalore
Life Just Gets Harder....

It ain't hifi but...

Actually just buying some herb/suppliment stuff from iherb.com, USA (plug: the service is good, and DHL gets the stuff here very quickly. Only thing is to make sure to check local prices and availability before buying, but you probably know that already. Also, you might think all this stuff is crap anyway: a lot of it is :cool:)

Here's from the Shopping-Cart Checkout page.



God knows what happens if I want to order a Schiit DAC! :rolleyes:

I have not completed the process tonight, as the PAN card is under the sleeping wife. Let sleeping wives lie!

I had received exactly the same request from Fedex on order for some electronic components from Mouser. But let me clarify that this is not new and I had similar requests earlier from DHL, UPS and ShopnShip.

Regards
 

sound_cycle

Well-Known Member
Joined
Jan 12, 2014
Messages
1,123
Points
83
Location
Hyderabad
I had received exactly the same request from Fedex on order for some electronic components from Mouser. But let me clarify that this is not new and I had similar requests earlier from DHL, UPS and ShopnShip.

Regards

The law is not new. The punishment/ enforcement is. Have done this (document providing) for buying tyres and a D lock.

ciao
gr
 

akvenugopal

New Member
Joined
Dec 29, 2011
Messages
16
Points
0
Location
Mumbai
:argue:

" So, if you purchase a software for Rs.6,000, and were required to have deducted tax of Rs.600, besides the tax of Rs.600 that can be recovered from you, a penalty of Rs.1 lakh can be levied on you for not filing the details of the payment online on the tax departments website"

I thought that means i have to keep careful track of the 12 INR per song I buy enter that into a website and then pay 1.2 INR tax per track (at 10%) or else pay 1L INR as fine.

This also applies to the Schiit DAC I was planning to source from the US, I guess. So now it is exchange rate, customs on CIF + 10% TDS

That's pretty hard and bite-y from my PoV

ciao
gr

Rule is applicable if one purchase is 50,000 rupees or more or in a year total 2,50,000 rupees paid to a single entity.
 

ajay0722

Active Member
Joined
Jul 19, 2012
Messages
251
Points
28
Location
bangalore, india
Rule is applicable if one purchase is 50,000 rupees or more or in a year total 2,50,000 rupees paid to a single entity.

Seniors :)....
Am still confused, can someone pls let me know if this is applicable for electronics bought from amazon etc or only for the software. Many of us buy/import electronics, but never heard of such thing. My all previous purchase were smooth and DHL/UPS never asked for any single document...

I have placed order for a music instrument worth INR 70K (including shipping/customs duty), which is yet to be deliver, would there be a problem with custom clearance? DO I need to declare this transaction on IT portal proactively Or wait and watch until a real question is arise (by carrier/customs).:confused:
 

Thad E Ginathom

Well-Known Member
Joined
Oct 11, 2009
Messages
6,381
Points
113
Location
Chennai
What confuses me is if we have to report these purchases one by one as we make them, or if we can club them with income tax return.

Anyway, as it is tax return rime for this year, will discuss this with accountant when I see him.
 

sound_cycle

Well-Known Member
Joined
Jan 12, 2014
Messages
1,123
Points
83
Location
Hyderabad
Rule is applicable if one purchase is 50,000 rupees or more or in a year total 2,50,000 rupees paid to a single entity.

No.

see the taxguru link i had posted

section 195 of the Act to provide that the person responsible for paying any sum, whether chargeable to tax or not, to a non-resident, not being a company, or to a foreign company, shall be required to furnish the information of the prescribed sum in such form and manner as may be prescribed. For ensuring submission of accurate information in respect of remittance to non-resident, it is further proposed to insert a new provision in the Act to provide that in case of non-furnishing of information or furnishing of incorrect information under sub-section (6) of section 195(6) of the Act, a penalty of one lakh rupees shall be levied. These amendments will take effect from 1st June, 2015.​

if the amount exceeds 50K (in one transaction) or 5x that (to a single entity) then a CA certificate is additionally required (from the livemint link I posted)

@ajay0722 all payments to Non residents.

@TEG, This article says from 01 Jun 15 onwards. No idea yet as to where i should update and how frequently (on a per song basis ?) :sad:


ciao
gr
 
Last edited:
Top