Advertisement agecy is liable to pay service tax

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harshit (Querist)

09 February 2013 The advertisement agency is published various advertise in newspaper co. as per client requirement.whether all trasaction is liable to service tax or not? if yes then client is liable to pay service tax on total ammount(news papers co. fees + advertisement co. fees) or on profit ammount (profit of advertisement agency) charged by advertisement agency.

Rajnish Singh

Rajnish Singh (Expert)

09 February 2013 Hi Harshita,

Advertisement is taxable Service. and rate of
taxes is charged on 15% .

you should clear this rate of percentage.

Thanks

harshit

harshit (Querist)

09 February 2013 ok but on which ammount service tax is payalbe to advertisement agency. e.g. - on profit ammount or total ammount charged by ad. agency from client.

Rajnish Singh

Rajnish Singh (Expert)

09 February 2013 Service tax will charged @12.36% on 15% of Advertisement Service.

You should clear this 15%. Is it 15 or more.

Thanks

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