How much tax to pay in India on revenue recd from Google Store App

If you have an app that for simplicity sake assume that it is sold only to Indian customers for say Rs.100/-

Google will pay Rs.70/- after deducting 30% transaction fee.

Do we get entire Rs.70/- as profit? I’m not sure. Can some experienced people clarify if following is correct:

1. We need to pay Rs.7.50 to Income Tax (25% Withholding Tax on 30% transaction fee paid to Google – since it is a payment to Non-resident entity without PAN in India)

2. We need to pay 12.36% Service Tax on Rs.100/- to Central Govt

3. We need to pay 5% VAT on Rs.112.36 go State Govt

So, we get approx Rs.44.52 in hand with Income Tax still to be paid on our Income.

And also there is a problem of whether to pay 5% as VAT or CST because we don’t know where the customers are located (in my state or other states or overseas).

Is this taxation correct? What’s your view?

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