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Service are taxable

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Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2013 I am sub agent, taking ad in newspaper from my client & give it to main agent, ad in new paper is come under negative list and not taxable service for main agent.
my query is, as a subagent i should charged service tax or not ?
before July2012 i charged 1.55% on net service and paid accordingly.
Please clarify urgently.
Thanks & Regards

Kaushik Vinod

Kaushik Vinod (Expert)

11 February 2013 The Services of Advertisement agency is different from Advertisement as per the Judgment of Hon'ble Madras High Court in the case of Advertising Club v. CBEC[2002]121 Taxmann 287. What is going to publish in the newspaper and the manner of presentation in the newspaper is the job of Advertisement agency.
Crux: Section 66D Clause (d)only exempt the Press Media or Electronic Media and not the Sub Agent or Main Agents working as Advertisement Agency.

Thanks

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