benefits of DTAA

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Sahil (Querist)

20 June 2009 I want to know the benefits received in Tax paying in U.S will they be received in Tax paying in INDIA under Double Taxation Avoidance Agreement or not pls reply as soon as possible

P.R.VITTAL RAO

P.R.VITTAL RAO (Querist)

20 June 2009 My organisation has engaged the servies of an Advertisisng Agency for pblishing an Ad in all leading news papers. They have made layout design and tex for the ad. While the submitting the bill, the agency did not submit a bill for service charges but submitted a bill for the tariff rates of publishers and then 15% of the total amount the bill, the service chrages was calucalated and charged to us. I argued that unless there is separate bill for services other than tariff preint media, I am notliable for service tax on the 15% of tariff value of publishrers. Am I correct. Please clarify at the eariliest.
P,R,VITTAL RAO

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)

21 June 2009 Dear Mr Rao your agency is providing two different taxable service.

1. Advertising agency service: Layout design and making of text for which you should charge ST on gross amount.
2. Business Auxiliary service: Canvassing of client's advertisement for publication in print media. As per the regulation you are to charge 15% from the media. Collect service tax only on 15% (your agency's commission) of the total amount charged by the media from your client.

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