Applicability of service tax to advertisement agencies

Selling of space and time is exempt from service tax under the negative list as was proposed in the Budget 2012. Now if your client is allowing the sapce of his to others in the form of displaying hoardings and etc. then it is not liable to tax. If it is not liable to tax then there is no question of paying the tax and then claiming refund for the same.

Could you confirm whether it is exempted only on display ad or is it applicable for production or maintenance of Website etc

Providing space or time for the purpose of advertisement is exempt and not maintenance job. Hope it is clear to you now.