Reverse charge mechanism

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S Sivasalapathy (Querist)
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27 August 2012 Anyone please tell me, What is service tax rate for Advertising Agency. I think it is 1.32%. Whether service receiver is liable to pay ST, if service provider collect ST @ 1.32%.

Thanks in Advance.

VINEET Roongta

VINEET Roongta (Expert)
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27 August 2012 Dear Sivasalapathy,

Service Tax rate for Advertising agency is the standard rate of 12.36%.

Now there is no abatement on the same.(notification no 26/2012)

reverse charge is not applicable in this case (notification no. 30/2012)

S Sivasalapathy

S Sivasalapathy (Querist)
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27 August 2012 But in my office one advertising agency collected from us @1.32%. And they have not mentioned their ST no. in invoice.Whether we have to pay ST.

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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27 August 2012 If the ST no not mentioned in the invoice then you can very well deduct from the final payment..

VINEET Roongta

VINEET Roongta (Expert)
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27 August 2012 On several occasions it has been seen that people are collecting service tax and they even do not possess a registration no.

They are either doing this on ignorance or willingly.

Look into the matter accordingly...

Earlier there was abatement on advertising agency, but now there is no such abatement, hence standard rates apply.

S Sivasalapathy

S Sivasalapathy (Querist)
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27 August 2012 Thank You verymuch VINEET Roongta & OBULIRAJAN R.

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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28 August 2012 you reply (thank) by clicking the thank user..

S Sivasalapathy

S Sivasalapathy (Querist)
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31 August 2012 I know Mr.Obulirajan. But this link is not displayed in my brouser.Once again thanks....

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