Service tax on advertising agency

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B Vinay Reddy (Querist)
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21 April 2017 [21/04, 6:35 p.m.] B VINAY REDDY: To give advertisement in news paper client approached some consultancy services
[21/04, 6:36 p.m.] B VINAY REDDY: They charged service tax on one invoice ( relating to adv on eenadu paper ) & they didn't charged service tax on another invoice ( relating to adv in Namasthe telangana ). Both invoices are raised on same dates and ST reg. No is also mentioned on both invoices But why they charged ST on one invoice and they didn't charged on another

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay (Expert)
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22 April 2017 For the applicability of service tax, there is certain threshold limit, one company may have crossed the limit and other company may not have crossed the limit.

B Vinay Reddy

B Vinay Reddy (Querist)
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22 April 2017 Both invoices are raised on same date and same company

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 If both invoices are from the **same company on the same date**, but service tax is charged on one and not on the other, here are some possible reasons:

1. **Nature of Advertisement/Service:**
Sometimes, service tax may apply only to specific types of advertising services. For example, if one invoice relates to **advertising services** (taxable) and the other relates to some **exempted service** or is considered a reimbursement, tax may not be charged on that.

2. **Exemption/Threshold Applied Differently:**
Even though it’s the same company, certain invoices might be exempt or under threshold limits for specific clients or specific services.

3. **Error or Omission:**
It’s possible the service provider made a mistake in not charging service tax on one invoice or forgot to include it.

4. **Invoice Splitting:**
If the invoice for Namasthe Telangana is for a **government publication** or a category exempt from service tax, then no tax would be charged.

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**What you can do:**

* Check if the service provider clarifies why service tax was not charged on the second invoice.
* Verify the exact nature of services invoiced — advertising services are generally taxable under “Advertising Agency Services” unless exempt.
* Confirm if any exemption applies to one of the invoices based on the type of publication or location.

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If you want, I can help draft a message you can send to the agency to ask for clarification!

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