Billboards / hoarding

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K V Sukumar

B.Com

45 Points Posted on 18 July 2012

Our company is into billboard business . We erect hoardings in pirvate premises and display our clients advertisement on short term and long term basis for consideration .

As per the negative list , selling of space and time do not attrat service tax .

please let me know whether we charge service tax to our clients are not ?

SUKUMAR

Replies (3)

"Sale of space for advertisement in bill boards, public places, conveyances, cell phones, ATM is not taxable". However services of Advertising agencies are excluded under this clause. Hence Services of Advertising Agency are taxable.

In my opinion your company is into bill board business it is just acting like an intermediary between the owner of Space & advertiser & thus it will be treated like an Advertising Agency & Service tax liability will be attracted.

Ajit kumar Dubey

Taxation Manager

797 Points Posted on 19 July 2012

In addition to the above view, if you are charging your client for the space for advertising then only you are liable to the exemption else not. Hope all the above views will make the legislation clear to you.

CA Unnikrishnan Nair N

Chartered Accountant

2114 Points Posted on 19 July 2012

If your service is mere selling of space, it is not taxable. If you provide other service say conceptualising ad pictures, painting bill board etc. , it may attract service tax.