Service tax on just dial services

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Guest

Hello Every one

client (webdesigner) wants to use adversing services of just dial for his business.

service are as somebody ask to just dial webdesigner in Delhi , then just dial msg the contact details of webdesigner.

but just dial co. wants to charge service tax on services but as new amendments advertising servises are in negative lists for servise tax??

so what should webdesigner Do?

Replies (7)

Ajit kumar Dubey

Taxation Manager

637 Points Posted on 07 July 2012

Selling of space or time slots for advertisement is exempt under the negative list. But advertisement by another media will be taxable. In the instant case service tax will be imposed as the advertisement is not in the nature of selling of space or time slot.Hence, view of just dial is correct.

Rajiv Awatramani

Manager - Accounts

22 Points Posted on 07 July 2012

Originally posted by : Nishant Jain
	i have a specific query . i am making a payment to one of my vendors who has a done a tree trimming /cutting job for my co. we are into electricity transmission business are required to trim trees wherever required near to the poles . Plz let me know if service tax is payable under the new service tax act eff 1-7-2012 . This was exempted under the service tax law for last year

Rajiv Awatramani

Manager - Accounts

22 Points Posted on 07 July 2012

i have a specific query . i am making a payment to one of my vendors who has a done a tree trimming /cutting job for my co. we are into electricity transmission business are required to trim trees wherever required near to the poles . Plz let me know if service tax is payable under the new service tax act eff 1-7-2012 . This was exempted under the service tax law for last year

Ajit kumar Dubey

Taxation Manager

637 Points Posted on 09 July 2012

It is not covered in the negative list nor in the mega notification. It would be liable to service tax, provided the company has crossed the basic exemption limit of Rs 10lac in the current year.

SosMe

Founder

65 Points Posted on 09 July 2012

Ajit kumar Dubey, So as u said for the first person that selling of ads by another media is taxable.What do u mean by another media here?

Let me tell me a scenario - A company is putting their advertisments on my website & people buy poducts from that company`s website by clicking on the advertisment on my website.

Based on the sale amounts, that company pays me certain % of money

In this case, will i have to pay service tax for the amount received? (remember, the advertisment of that company was put on my website)

You clarification would b very helpful

Ajit kumar Dubey

Taxation Manager

637 Points Posted on 09 July 2012

In your case, the service provider (website) is charging for the space provided for the advertisement of the company (service receiver). Now since it involves sale of space, service tax is exempt. Hope it answers your query.