Hi, I have placed a couple of advertisments in the newspapers namely Times of India and The Hindu. The ad agency is charging me servie tax of 2.25%. I have heard from my friend that service tax is exmpeted in the case of advertisment in newspaper print media. Please calrify if this is true.
Thanks in advance.
No. Services provided by advertisement agencies relating to making or preparation of advertisements would not be covered in this negative list entry and would thus be taxable. This would also not cover commissions received by advertisement agencies from the broadcasting or publishing companies for facilitating business, which may also include some portion for the preparation of advertisement. Service tax will be charged @ 15% on commission portion / preparation charges of the advertisement.
regards
CAclubindia
