Service tax on mobile games
This query is : Resolved
20 October 2013
My client launches games that are compatible with android based mobile devices.Presently, Game is free of cost for users. When users play game, some ads are displayed on screen for example ad of wechat. If the user click on that ad , my client receives income from google not from the person being advertised
Questions:
1. is this ad payment received from Google chargeable to service tax (as per me ads on internet are covered in negative list of service tax)
2.we are not aware where game is being played , who is the person being advertised, It is controlled by google who is our direct customer.It is also possible that if an indian entity is being advertised , it may be paying service tax under reverse charge on payment made to google
3. what will be implications when our game will become chargeable
Questions:
1. is this ad payment received from Google chargeable to service tax (as per me ads on internet are covered in negative list of service tax)
2.we are not aware where game is being played , who is the person being advertised, It is controlled by google who is our direct customer.It is also possible that if an indian entity is being advertised , it may be paying service tax under reverse charge on payment made to google
3. what will be implications when our game will become chargeable
20 October 2013
Finance Minister , in his budget 2012 speech,
announced that selling of space or time slots for
advertisements other than advertisements
broadcast by radio or television will be included
in the negative list and thus will be exempt from
the levy of service tax at the rate of 12 per cent.
The negative list currently comprises of 17
services and the mega exemption list covers an
additional 34 services.
As a consequence the sale of space for
advertisement in by mobile operators, VAS
providers, websites, blogs etc. on the Internet will
be exempt and would not attract any service tax
announced that selling of space or time slots for
advertisements other than advertisements
broadcast by radio or television will be included
in the negative list and thus will be exempt from
the levy of service tax at the rate of 12 per cent.
The negative list currently comprises of 17
services and the mega exemption list covers an
additional 34 services.
As a consequence the sale of space for
advertisement in by mobile operators, VAS
providers, websites, blogs etc. on the Internet will
be exempt and would not attract any service tax
20 October 2013
However, Services provided by advertising
agencies and relating to making or preparation
of advertisements would not be covered in this
negative list and are still taxable at the enhanced
rate of 12%
agencies and relating to making or preparation
of advertisements would not be covered in this
negative list and are still taxable at the enhanced
rate of 12%
21 October 2013
Thanks
Further could you please throw light on applicability of VAT/Service tax when our game will become chargeable
Further could you please throw light on applicability of VAT/Service tax when our game will become chargeable
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Tax on Deemed Capital Gain
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- ASMT-10 received from A O
- Rental income of jointly held property
- Accounting with Claude
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
