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

[ajay0722]

So my take away (from this discussion & Google search) is 'Furnishing the details of the transaction is mandatory, however as the merchant (Amazon or so) are not liable to pay income tax to GoI, no TDS is required to be submitted to IT Dept, India, so no additional cost. I may be wrong (but I wish I am right here )

I Will also see CA soon to file IT Returns, will try to understand this matter further....

 

[sound_cycle]

I Will also see CA soon to file IT Returns, will try to understand this matter further....

Thanks. And I wish you are right

Please post when you have the info.

ciao
gr

 

[rkoti]

Guys, I talked to my CA. This is applicable only if the software/services is for business use and you are going to set it off in your tax returns. There is no implication for personal use.

 

[hydra]

The livemint link says that:

Payments for business or personal travel expenses (which would include online booking of hotels or rail tickets) are excluded, as are remittances for investments abroad in shares, debt securities or real estate, maintenance of close relatives, education expenses, gifts and donations.

Which means payments for business use are excluded (not included) from being reported, right?

This rather confusing.

 

[Thad E Ginathom]

The DHL/other-couriers KYC thing...

Can anybody give me pro-forma for the letter of authorisation, please? What do they want it to say?

EDIT... ok, once clicked "Individual," they give the wording, so not needed.



(And, btw... the Schiit DAC... yeah... buying used in India )

 

[Naturelover]

Any update on this? Would appreciate more inputs.
Thanks

 

[rkoti]

The livemint link says that:



Which means payments for business use are excluded (not included) from being reported, right?

This rather confusing.

The article says that travel expense for business or travel is excluded....only travel.

 

[sound_cycle]

Guys, I talked to my CA. This is applicable only if the software/services is for business use and you are going to set it off in your tax returns. There is no implication for personal use.

First purchase on itunes after we read about this.

A new agreement screen popped up.

Says clearly that price is net of taxes and that as a purchaser in India I am responsbile for paying taxes.

So the interpretation that it is not for personal use is probably not correct.

Any one else purchased on itunes ?

ciao
gr

 

[manniraj]

First purchase on itunes after we read about this.

A new agreement screen popped up.

Says clearly that price is net of taxes and that as a purchaser in India I am responsbile for paying taxes.

So the interpretation that it is not for personal use is probably not correct.

Any one else purchased on itunes ?

ciao
gr

I think the iTunes that sells songs and other things as well via its app store is governed by the tax laws within India and also you pay in INR. Hence the purchase includes the taxes that are supposed to be collected from the customers. Its fully legal as Apple India is a registered entity in India and this is the company which is selling it via app store as well as iTunes and not Apple Inc. I think via the app store you can actually ask for an invoice of your purchase and Apple could send you the soft copy of the purchase. The same is the case with Google app store.

 

[sound_cycle]

Hence the purchase includes the taxes that are supposed to be collected from the customers

Agreed with all of what you said. including the above.

However taxes are NOT collected by itunes. It says explicitly that prices are net of taxes and it is the buyers responsibility to meet credit card dues and pay relevant taxes. (Did not do a screen cap. aplgs)

There is a pop up with the above stuff you have to read and click on agree, itunes then went on to make that test $1 transfer from my CC (as it would when you added a new card in the past)

I am currently of the opinion that it is my (as a buyer) responsibility to collect, preserve invoices (receipts come from itunes to my mail id without asking), declare them ALL and pay the tax as applicable. The fine for failing to do so is Rs 1 lakh. Even if i forget to declare the train song, Holly cole, INR 12.00

ciao
gr

 

[manniraj]

Why did iTunes charge you in dollars "$1" on your CC when they are supposed to charge you in INR as you are in India and purchasing from Apple India's iTunes site? I think that pop-up is because of this reason (CC charge is done by Apple Incorporated rather than Apple India I presume) as I do not get this pop-up in my Mac Book when I purchase any app or music through iTunes and my CC gets charged in INR and not in $.

 

[sound_cycle]

Why did iTunes charge you in dollars "$1" on your CC when they are supposed to charge you in INR as you are in India and purchasing from Apple India's iTunes site? I think that pop-up is because of this reason (CC charge is done by Apple Incorporated rather than Apple India I presume) as I do not get this pop-up in my Mac Book when I purchase any app or music through iTunes and my CC gets charged in INR and not in $.

To clarify I was charged 60 INR. (~ $1 test charge equivalent).

When was your most recent itunes purchase. Mine was this morning at 0700 hrs.

ciao
gr

 

[manniraj]

To clarify I was charged 60 INR. (~ $1 test charge equivalent).

When was your most recent itunes purchase. Mine was this morning at 0700 hrs.

ciao
gr

I think I purchased a app last month to be installed in my Mac book and not any music since 6 months. Let me check it again today via iTunes does it pop-up for me as well.

 

[ajay0722]

Amazon is not showing any new warning about the taxes to be paid in India (if any). I read the fine prints of 'terms & conditions' but could not find such tax thing apart from the import duty.

Also, I noticed many people getting refund of import duties, create more doubts (Why would Govt allow people to enjoy A/V without getting their pie, or why Amazon will cut from their margin and give refunds). I am refrain to place any new order unless the dust clears.

We need a CA in the forum please

 

[acjacob]

I checked with a CA. This is applicable only if
the purchase value from a single seller is
a) more than Rs.2.5 lakhs in a calendar year
or
b) if a single transaction is Rs.50,000 or more

 

[sound_cycle]

I checked with a CA. This is applicable only if
the purchase value from a single seller is
a) more than Rs.2.5 lakhs in a calendar year
or
b) if a single transaction is Rs.50,000 or more

No. As per the livemint article (linked 1st post)

If it goes above these criteria then a CA certificate has to be furnished with the declaration

It the article is indeed wrong, then the ghee shakkar etc

ciao
gr

 

[rankesh]

I googled it apart livemint link nothing found about this,I was about to order Optoma HD141x but stopped after reading this news... really confused now :sad:

 

[ajay0722]

I googled it apart livemint link nothing found about this,I was about to order Optoma HD141x but stopped after reading this news... really confused now :sad:

This amendment is stated in various sites (taxguru/taxman/IT Dept) but the correct interpretation is missing (will it be applicable for items purchased from amazon etc for personal usage?)...
whatever be the case, this is applicable from 1st june 2015, so i guess you have to declare it in the next financial year, IMO buy it and enjoy till then

 

[rankesh]

Yeah,Correct information is not given anywhere,Anyways I ordered Optoma HD141x :licklips: from amazon will keep an eye on declaration part.

Thanks

 

[sound_cycle]

this is applicable from 1st june 2015, so i guess you have to declare it in the next financial year, IMO buy it and enjoy till then

Done that.:lol:

Note to self Just keep 20% of that amount ready to pay up ....

ciao
gr