Advertising agency

Queries 437 views 1 replies

1. If the advertising agency buys the adspace on Internet and the revenue is shared between the advertising agency and the website owner. Does this cost earned through the adspace is taxable for both of them?

2. If the advertising agency and the website owner is within India and the commission paid to website owner, is that taxable? What kind of tax (service tax, or any other) and what %?

3. If the advertising agency is in India and the website owner is outside India and the commission paid to website owner, is that taxable? What kind of tax (service tax, or any other) and what %?

4. The advertising agency (Within India) uses the platform provided by the adserver company (Outside India) and publishes the ads on the website. Does the revenue generated with this activity applicable for service tax. If yes, what %?

5. Does the advertising agency needs to pay any other tax?

Replies (1)

Advertisements other than advertisements broadcast by radio or television” will be included in the negative list, 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.


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