There is a recent notification which states that service tax is exempt to advertising agencies. One of my clients prepares bus shelters and earns revenue through displaying advertisements on it. Does it fall under advertising agencies and the exemption can be claimed from paying service tax. Kindly provide advice on it. Thanks
Selling of space and time is exempt from service tax under the negative list as was proposed in the Budget 2012. Now if your client is allowing the sapce of his to others in the form of displaying hoardings and etc. then it is not liable to tax. If it is not liable to tax then there is no question of paying the tax and then claiming refund for the same.