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India Understanding taxes and TDS certificates (India only) When making payments in India, taxes will be part of the process.

 That's because we pass a portion of each of your payments to the Indian tax authority to cover service tax. (You're responsible for paying any other applicable taxes.) If you'd like tax advice, contact the Indian tax authority. 

Where to find your service tax in your account A line item will appear on your AdWords account (under the Billing tab) each time you make a payment specifying how much was paid in tax.

 This breakdown will be reflected on the printable invoices available on your Billing tab.

 About service tax Effective April 1, 2012, service tax is calculated at a higher rate of 12.36%, up from 10.3%. The 12.36% tax rate is broken out as Service tax at 12% and a 3% education cess. 

Here’s how this change affects advertisers: Advertisers who pay by credit card or funds transfer We’ll continue charging you the 10.3% rate until further notice. 

 Advertisers who use a credit line and pay by monthly invoicing The 12.36% tax rate will be reflected on your April 2012 invoice, which covers the costs accrued in April 2012.

 The 2012 India Budget The India Budget for 2012 includes a proposal to include “online advertising” on a Negative List. 

This means the tax rate for online advertising services could be 0% for service tax purposes. 

If this proposal is accepted by the Indian parliament, Google will comply with the new requirements. 

How we calculate service tax When you make a manual payment (a payment before your ads run), we assume that you included the amount you wanted credited to your account, as well as 10.3% of this amount to cover service tax. In other words, if you make a pay of X, we break the amount down into Y and 10.3% of  Y. 

We credit your account Y and pay 10.3% of Y in service tax. 

This is the equation we use, where X is the amount of your prepayment, and Y is the amount credited to your account: X = Y + (0.103 * Y) X = 1.103 * Y Y = X/1.103 

Here's an example: Let's say you made a payment of INR 2,206. To determine how much to credit your account (Y), we would calculate: Y = INR 2,206/1.103 Y = INR 2,000 We'd credit your account INR 2,000 and pass the remaining INR 206.00 to your government's tax authority as service tax. 

About Tax Deducted at the Source (TDS) In May 2010, the Central Board of Direct Taxes announced that TDS certificates are required every quarter, rather than issuing certificates annually. 

(More information can be found on the Income Tax Department of India website.) This change is effective starting the 2010-11 fiscal year. Certificates for quarters ending in June, September and March need to be issued by July 30th, October 30th, January 30th and May 15th, respectively. 

No TDS certificates for the previous financial year will be accepted if sent after April 30th of the following financial year.

 For example, all certificates for fiscal year 2010-11 should be sent no later than April 30, 2011. 

Sending Tax Deducted at the Source (TDS) certificate When you send us your TDS certificate, be sure to include a cover letter with your 10 digit customer ID details and indicate what form of payment you use for your AdWords account. When you have all this information, please send it to the following mailing address: ATTN: Google Accounting Team Google India Pvt. Ltd. Block 1, DivyaSree Omega Survey No. 13, Kondapur Village, Hyderabad – 500 081 Andhra Pradesh, India Google's Permanent Account Number (PAN) is AACCG0527D and the registered address on the TDS Certificate should be: Google India Pvt. Ltd. No.3, RMZ Infinity, Tower E, Old Madras Road, 4th & 5th Floor, Bangalore - 560 016 updated 07/05/2012 Change Language: * ©2012 Google * Google Home * Privacy Policy * Terms of Service * AdWords Advertising Policies * Help with other Google products * 

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