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Is service tax applicable on media expenses.

This query is : Resolved 

09 June 2015 Dear Sir/Madam,

Our company is providing services to educational institute by advertising on google and other website. We are charging commission on it.so at a time of billing we bill them amount spend on media and % of commission on it.

My question is while we are raising invoice to educational institute. Service tax is applicable on only commission or commission and money spend on media.

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Guest (Expert)
09 June 2015 Dear Sudesh,

Generally, service tax is applicable only on the commission and not on the money spent on media. However, in some cases, the expenditure on media will also be added for service tax. But for that, I need to know the elaborate nature of your contract with educational institutions because I have to consider the peculiarities of your business nature before giving proper advice. If possible, you may PM me the terms & conditions of your contract hiding confidential information if any. I will go through the same and advise you accordingly.

10 June 2015 Dear sir,

Thanks for your revert.
Earlier we were charging service tax only on the commission. At that time invoice raised by media not have any service tax but in recent bill indian media companies like Times Now providing bill which include serrvice tax and foreighn companies like facebook and linkedin not charged any taxes. So in this case can i charge service tax to my client.


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