Service tax on advertisement

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ASST.MANAGER - ACCOUNTS
57 Points Joined March 2011

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

 

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On 19 June 2013 at 10:13 Report
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taxation
27 Points Joined October 2008
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
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On 19 June 2013 at 10:32
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Tax Consultants
49 Points Joined November 2012

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

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On 03 July 2013 at 11:16
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CHARTERED ACCOUNTANT
396 Points Joined August 2010

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.

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On 04 July 2013 at 07:30
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Accountant
342 Points Joined October 2010

Dear Nirav sir,

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

Thank you.

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On 13 December 2013 at 13:09
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Audit Officer
42 Points Joined July 2014

can any one plz clarify the ST issues on advertisement

 

Thanks

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On 20 July 2014 at 14:55
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Tax Consultant and Audit Assistant
24 Points Joined March 2013

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

 

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On 07 April 2015 at 15:55


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