GOOD EVENING,
OUR'S IS A COMPANY, AND GIVEN ADVERTISEMENT IN PRINT MEDIA THROUGH AGENCY (AN INDIVIDUAL FOR FOR RS. 89000, AND TO A COMAPANY FOR RS. .29039
I REQUEST U TO SPECIFY IS REVERSE CHARGE APPLICABLE FOR THIS SERVICE
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Is reverse charge applicable for payment to advertisement
Replies (5)
The list of services notified vide Notification No.30/2012-ST dated 20-6-2012. under Reverse charge mechanism is given here under....I don't find that Advt. service is covered under that
Sr.
No.
Descriptttttion of service
Service
Provider
Service
Receiver
Liabilit of
service ta
1
Services of insurance
agent
[Rule 2(d)(i)(
Insurance
Agent
Insurance
Company
100% by
insurance
company
2
Services of Goods
Transport Agency (GTA) of
goods transport
Goods
Transport
Agency (one
who issues
consignment
note)
Consignor or
consignee who
is (a) factory,
society,
registered
dealer of
excisable goods,
body corporate,
partnership firm,
AOP and (b)
who pays or is
liable to pay
freight either
himself or
through his
agent for
transportation
of such goods in
goods carriage
Tax payable on
25% of value if
Cenvat credit has
not been availed
by service
provider. Hence, it
is necessary to
obtain certificate
from the service
provider (GTA)
that he has not
availed any
Cenvat credit.
Otherwise, service
tax will be payable
on 100% of the
value.
Entire tax is
payable by service
receiver.
Person liable to
pay freight for
transportation of
goods, located in
taxable territory,
shall be the
person who
receives the
service. If such
person is located
in non-taxable
territory, the
provider of service
shall be liable to
pay service tax.
3 Sponsorship service Any person
Any body
corporate or
partnership firm
located in the
taxable territory
Entire tax payable
by service
receiver. If the
receiver of service
is not body
corporate or
partnership
firm or if such body
corporate or
partnership firm
is nolocated in
taxable territory,
the service
provider (i.e.
person receiving
the sponsorship
money) will be
liable to pay the
service tax.
4 Services of Arbitral Tribunal
Arbitral
Tribunal
Business Entity
Entire tax payable
by service receiver
5
Legal Services of Advocate
or Advocate Firms
Individual
Advocate or
Advocate
Firms
Business Entity
having turnover
exceeding ` ten
lakhs per
annum, located
in taxable
territory
Entire tax payable
by service receiver
5A
Services of director to
company (entry added
w.e.f. 7-8-2012)
Director Company
Entire tax payable
by service receiver
6
Support Services by
Government or Local
Authority ecludingrenting
of immovable property and
services specified in
clauses (i), (ii) and (iii) of
Section 66D(a) of Finance
Government
or Local
Authority
Business Entity
located in
taxable territory
Entire tax payable
by service receiver
1/9/13 Reverse Charge Mechanism In Nutshell with FAQ - CAclubindia
caclubindia.com//reverse-charge-mechanism-in-nutshell-with-faq-2343 4/5
0
Act, 1994 (These cover
postal, port, airport and
railway services)
7
Renting or hiring of motor
vehicle designed to carry
passengers to any person
who is not in the similar
line of business
Individual,
HUF,
proprietary
or
partnership
firm, AOP
located in
taxable
territory
Business entity
registered as
body corporate
located in the
taxable territory
Tax on 40% of
value by service
receiver and Nil by
service provider. If
the service
provider intends
to avail Cenvat
credit, he can pay
service tax on
balance 60%.
Thus, service
receiver is liable to
pay service tax
only on 40%
value.
8
Supply of Manpower for
any purpose or security
service (The words or
securit service were
added w.e.f. 7-8-2012
Individual,
HUF,
proprietary
or
partnership
firm, AOP
located in
taxable
territory
Business entity
registered as
body corporate
located in the
taxable territory
Tax on 25% of
value by service
provider and 75%
by service receiver
9 Service portion in
execution of Works
Contract
Individual,
HUF,
proprietary
or
partnership
firm, AOP
located in
taxable
territory
Business entity
registered as
body corporate
located in the
taxable territory
Tax on 50% of
value by service
provider and 50%
by service receiver
10 Services received from
non-taxable territory
(Import of Service)
Located in
non-taxable
territory
Located in
taxable territory
Entire tax payable
by service
receiver.
Source: Web & Self.
Advertising services are not included in the reverse charge mechanism list. However, if the services are given to a foreign agent, then you are liable for payment of service tax.
No Reverse Charge on Advertisement
revese charge is applicable on sponsership and not on the advertisement services
revese charge is applicable on sponsership and not on the advertisement services
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