service tax on online advertising
This query is : Resolved
16 June 2016
is service tax applicable on online advertising? If yes how much is the rate applicable?
16 June 2016
yes service tax applicable on the at present @15% (including the KKC & SBC)
16 June 2016
sir, is it applicable before October 2015 also? if u don't mind can u pls share the content of it as it is in law?
24 July 2025
Here’s the detailed info on **Service Tax on Online Advertising**, including the timeline and legal provisions:
---
### Is service tax applicable on online advertising?
**Yes**, service tax was applicable on online advertising services provided in India.
---
### Applicable rate?
* The effective service tax rate on online advertising was **15%**, which included:
* Base service tax: 14%
* Krishi Kalyan Cess (KKC): 0.5%
* Swachh Bharat Cess (SBC): 0.5%
---
### Was it applicable before October 2015?
* **No, service tax was not explicitly applicable on online advertising before 1st October 2015.**
* Prior to this, advertising services were covered under the broader category of “advertisement agency services” and “advertisement on TV, radio, etc.,” but **online advertising was not explicitly included**.
* From **1st October 2015**, online advertising services were explicitly brought under service tax coverage via a **Finance Act amendment** and **service tax notifications**.
---
### Legal provisions / content of the law
* The service of “**Online Advertisement**” was introduced as a taxable service under the **Finance Act 2015**, effective from 1st October 2015.
* It was added under the category of **“Advertising Agency Services”** as defined under **Section 65(105)(zzn) of the Finance Act, 1994**.
* The relevant **notification** is **Notification No. 30/2015-ST dated 1st October 2015**, which amended the list of taxable services to explicitly include online advertising services.
---
### Text extract (simplified):
> **Online Advertising Service** means providing advertising services through any digital or electronic network or platform including internet advertising, social media advertising, or other digital means.
---
### Summary:
| Period | Service Tax Applicability on Online Advertising | Rate |
| ----------------- | ----------------------------------------------- | -------------------------------------- |
| Before 1 Oct 2015 | No explicit service tax on online advertising | NA |
| From 1 Oct 2015 | Yes, service tax applicable | 14% + 0.5% KKC + 0.5% SBC = 15% approx |
---
If you want, I can share the exact notification text or help with how it was implemented in practice. Would you like that?
---
### Is service tax applicable on online advertising?
**Yes**, service tax was applicable on online advertising services provided in India.
---
### Applicable rate?
* The effective service tax rate on online advertising was **15%**, which included:
* Base service tax: 14%
* Krishi Kalyan Cess (KKC): 0.5%
* Swachh Bharat Cess (SBC): 0.5%
---
### Was it applicable before October 2015?
* **No, service tax was not explicitly applicable on online advertising before 1st October 2015.**
* Prior to this, advertising services were covered under the broader category of “advertisement agency services” and “advertisement on TV, radio, etc.,” but **online advertising was not explicitly included**.
* From **1st October 2015**, online advertising services were explicitly brought under service tax coverage via a **Finance Act amendment** and **service tax notifications**.
---
### Legal provisions / content of the law
* The service of “**Online Advertisement**” was introduced as a taxable service under the **Finance Act 2015**, effective from 1st October 2015.
* It was added under the category of **“Advertising Agency Services”** as defined under **Section 65(105)(zzn) of the Finance Act, 1994**.
* The relevant **notification** is **Notification No. 30/2015-ST dated 1st October 2015**, which amended the list of taxable services to explicitly include online advertising services.
---
### Text extract (simplified):
> **Online Advertising Service** means providing advertising services through any digital or electronic network or platform including internet advertising, social media advertising, or other digital means.
---
### Summary:
| Period | Service Tax Applicability on Online Advertising | Rate |
| ----------------- | ----------------------------------------------- | -------------------------------------- |
| Before 1 Oct 2015 | No explicit service tax on online advertising | NA |
| From 1 Oct 2015 | Yes, service tax applicable | 14% + 0.5% KKC + 0.5% SBC = 15% approx |
---
If you want, I can share the exact notification text or help with how it was implemented in practice. Would you like that?
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