Is service tax applicable on advertising agency ??
This query is : Open
CA Abhishek Singh
(Querist)
31 October 2012
My client is an advertising agency. he purchases ad space in the newspapers like DNA/HT etc. he sells the space to his clients who want to advertise.
my client pays to the publisher say Rs.180000/- and my client charges to the client Rs.200000/-. his commission is Rs.20000/- only.
my question :
1. is service tax applicable on payment received by my clinet (ad agency) from the person whose goods/services are advertised ? and
2. Rate of service service tax i.e. entire 200000 will be subjected to service tax or only Rs.20000/-. thanks in advance waiting for your reply.
my client pays to the publisher say Rs.180000/- and my client charges to the client Rs.200000/-. his commission is Rs.20000/- only.
my question :
1. is service tax applicable on payment received by my clinet (ad agency) from the person whose goods/services are advertised ? and
2. Rate of service service tax i.e. entire 200000 will be subjected to service tax or only Rs.20000/-. thanks in advance waiting for your reply.
Pradeep Nainawati
(Expert)
02 November 2012
Hi Abhishek,
ST is to be paid on Rs 2 Lakhs.
ST is to be paid on Rs 2 Lakhs.
18 December 2013
service tax should be on only Rs.20000 i.e on profit margin. and now after negative list ...this service of sale of time slot in newspaper is exempt from service tax.
29 May 2015
sir, could you send me any circular on this to my mail id...sreluri@gmail.com
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