Service tax rate
This query is : Resolved
CA R SEETHARAMAN
(Expert)
29 April 2016
Service tax not applicable on advertisement in print media.
Message likes :
1 times
30 April 2016
However, service provider has charged 2.1% ,so may I able to take credit of the same?
24 July 2025
Great question! Here's the detailed explanation about **service tax on advertisement in newspapers and input credit**:
---
## 📢 **Service Tax on Advertisement in Print Media (Newspapers)**
### 1. **Is service tax applicable?**
* **No, service tax is not applicable on advertisement services provided by newspapers or print media.**
* This is because **newspapers are exempt from service tax** on their advertisement services under **Notification No. 25/2012-ST** and other related exemptions.
---
### 2. **Why did service provider charge 2.1%?**
* Sometimes, service providers mistakenly charge **service tax on advertisement invoices**.
* Or, it may be a **commission or agency service** (which is taxable) — but the **actual ad space sold by newspapers is exempt**.
---
### 3. **Can you take CENVAT/input credit of that service tax?**
* **No**, you cannot take input credit of service tax charged on **exempt services**.
* If service tax is charged wrongly on exempt services, the recipient can **request the supplier for credit note** or refund of service tax.
* Taking input credit on tax paid for exempt services is **not allowed** under the CENVAT Credit Rules.
---
## ⚠️ **What Should You Do?**
* **Ask the newspaper/service provider to issue a corrected invoice without service tax.**
* If service tax has already been paid wrongly, **request refund** or adjust in next transactions.
* Avoid taking input credit on such wrongly charged service tax — it may be disallowed during audit.
---
### **Summary:**
| Service | Service Tax Applicable? | Input Credit Allowed? |
| ----------------------------------------- | ----------------------- | --------------------- |
| Advertisement in newspapers (print media) | ❌ No | ❌ No |
---
If you want, I can help you draft a **letter/email to the newspaper** requesting correction of the invoice. Would you like that?
---
## 📢 **Service Tax on Advertisement in Print Media (Newspapers)**
### 1. **Is service tax applicable?**
* **No, service tax is not applicable on advertisement services provided by newspapers or print media.**
* This is because **newspapers are exempt from service tax** on their advertisement services under **Notification No. 25/2012-ST** and other related exemptions.
---
### 2. **Why did service provider charge 2.1%?**
* Sometimes, service providers mistakenly charge **service tax on advertisement invoices**.
* Or, it may be a **commission or agency service** (which is taxable) — but the **actual ad space sold by newspapers is exempt**.
---
### 3. **Can you take CENVAT/input credit of that service tax?**
* **No**, you cannot take input credit of service tax charged on **exempt services**.
* If service tax is charged wrongly on exempt services, the recipient can **request the supplier for credit note** or refund of service tax.
* Taking input credit on tax paid for exempt services is **not allowed** under the CENVAT Credit Rules.
---
## ⚠️ **What Should You Do?**
* **Ask the newspaper/service provider to issue a corrected invoice without service tax.**
* If service tax has already been paid wrongly, **request refund** or adjust in next transactions.
* Avoid taking input credit on such wrongly charged service tax — it may be disallowed during audit.
---
### **Summary:**
| Service | Service Tax Applicable? | Input Credit Allowed? |
| ----------------------------------------- | ----------------------- | --------------------- |
| Advertisement in newspapers (print media) | ❌ No | ❌ No |
---
If you want, I can help you draft a **letter/email to the newspaper** requesting correction of the invoice. Would you like that?
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