Service tax on advertisement

Queries 26904 views 6 replies

An advertisement agency, raised service tax on the bill @ 1.85%.  Service tax is 12.36%, balance 10.51% who has to pay?

is advertisement givers to pay? can we take this as cenvat credit?

Please clarify

Jitendra

 

Replies (6)
1.85% is calculated on 15% agency commission i.e. 15*12.36% =1.85% coz company gets only 15% and hence pays service tax on it only

plz give me a break up of service tax & education cess on advertisement expenses i.e. 1.85%

and the balance of 12.36% is 10.51%, service receiver will be payable or not?

thanks in advance

vikas

Genrerally in case of advertising agency it is a practice that 15% of the amount is given as commission. Treat the 15% as inclusive of service tax and pay service tax by back calculation.

Dear Nirav sir,

Please show us any example so that we can understand properly.

Thank you.

can any one plz clarify the ST issues on advertisement

 

Thanks

Please provide if there is any notification on such 15% clause.

 


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