Practicing Chartered Accountant

My client is an advertising Company, having sole booking rights for magzines in print media. My client has purchased advertising spaces in magzines well in advance, books the advertisiment from clients and send the CD/ ad to the rpint media for publicaton. It does not develop/ design the ad.

My query is whether my client is within the perview of Maharastra VAT. If yes, if it does the booking of client from Delhi, is he liable to charge CST.  


In my opinion, advertising space in magagines does not come under the definition of goods hence these transactions should be out of the purview of VAT.You are advised to check the definition of goods provided in your state VAT Act.

Plaese Consider following. d) ''goods'' includes all materials, articles, commodities and all other kinds of movable property, but does not include newspapers, actionable claims, stocks, shares and securities; ''sale'' with its grammatical variations and cognate expressions, means any transfer of property in goods by one person to another for cash or for deferred payment or for any other valuable consideration, and includes ,- (i) a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration; (ii) a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract; (iii) a delivery of goods on hire-purchase or any system of payment by instalments; (iv) a transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration; (v) the supply of goods by any unincorporated association of body of persons to a member thereof for cash, deferred payment or other valuable consideration; (vi) a supply, by way of or as a part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink(whether or not intoxicating), where such supply or service, is for cash, deferred payment or other valuable consideration, but does not include a mortgage or hypothecation of or a charge or pledge on goods; (h) ''sale price'' means the amount payable to a dealer as consideration for the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the after going through the above three definition it is clear that purchasing of space does not amount to goods, rental charges reced for hiring space does not sale price as you are not tranferring prorety in goods. it will also not attract right to use tax becuase it also levied on goods.



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