I work in a private company & we are in Logistics businees.
we have given a ad in a local magazine ,Now we recieve invoice for that in which ST is charges at the rate of 1.50 %.
please clearify why ?
this is wrong or there is some provision regarding this.
First find out what is the percentage of commission you agency is cahaging you or the news paper for procuring the ad, because I believe the agency is charging you service tax on the commission received and not on the gross value.
Normally advertising agents get a commission of 15% in advertisement indutry, it is a norm. 10% service tax of 15% commission is the amount of service tax.
CAclubindia
