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 online

Aashok Kumar Sharma online

(Expert)
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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.

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