Regarding information service tax on advertising service pro

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2012 Dear Sir,

Ref mention above subject required information about how to calculate service tax rate on advertising agency & if any spl. abatement in that case, kindly suggest how to calculate. your immediate attention in this regard highly appreciated.

Thanks & rgds
Sachin Rana

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2012 what if we file a st return on a wrong address

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2012 pls calrify on above

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

20 July 2025 Hey! About service tax on advertising services by an agency, here’s a quick overview:

Service Tax on Advertising Services (as per old Service Tax regime before GST):
Taxable Service:
Advertising agency services are taxable under the category “Advertising and Marketing Services”.
Service Tax Rate:
Before GST, service tax was charged at 14% (12% service tax + 2% education cess), later increased to 15% with additional cesses.
The applicable rate depends on the period, but generally around 14-15%.
Abatement (Partial Exemption):
No special abatement is available specifically for advertising agency services.
You need to pay service tax on the full value of the service provided.
Value of Taxable Service:
The gross amount charged to the client for advertising services forms the taxable value.
If any discounts are given, the value post-discount is considered.
How to Calculate:
Service Tax = Taxable Value x Applicable Rate
For example, if the invoice value is ₹1,00,000 and service tax rate is 15%, service tax will be ₹15,000.
Reverse Charge:
In some cases, such as when advertising services are provided by a foreign entity to an Indian recipient, reverse charge may apply.
Summary:
Advertising agency services attract service tax @ ~15% (before GST).
No special abatement on advertising services.
Calculate service tax on gross invoice amount.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now