One of My Client is News agency for print media, client taking ads from his customers for giving ads in print media, that same will be given to print media for Add.in this transaction they are charge S.Tax to his customers on margin of the difference between amount given by customer & amount charged by print Media . IS it Correct or not.
IF any abbetments is available to agent or not ,this follwing prcedure is correct or not . Please sugget.
27 May 2015
The activity of selling space in the print media is covered under the negative list, hence the print media agency cannot charge service tax on the same. In regard with your client who is charging service tax on the margin is correct, as he is rendering the agency service, which is neither exempt nor covered under the negative list.
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