Service tax impact on releasing advertisment

Respected Senior,

We having a advertisement agency and it was registered with Service Tax Department. Basically we are provide to our client designing and graphic part of advertisement as a creative charges and we are raised them the bill with Service Tax 12.36.

Some time some client are request  us to releasing their advertisement into the newspaper and according to their request we book space on the newspaper. Newspaper agencies raised us bill for space booking and we made them payment. We pass the entry in our book as given below –

Advertisment Exp A/c Dr.

News Paper Agencies A/c Cr.

Due to space booking on News Paper we raised the bill to our Client, as there is no creativity we are not adding any Service Tax on the Bill and we pass the entry in our book as given below –

Client A/c Dr.

Advertisement Exp A/c Cr.

After both the entries the Advertisement Exp A/c become nill. Now my question to you, please advise me, this is a right procedure. Or I have to maintain some other way? What is the impact of Service Tax on releasing advertisement. Please guide me.

If a advertising agency booking space for advertisement in print media on behalf of his client, the agency is not charging any service tax on their bill for their clients as advetising on print media is exempted.

The advertising agency received bill from media house and also raised bill to their client. Please help me on how to make entry in both cased in the books of Advertising Agency, how to file the return of Service Tax. Thanks in advance.