Tds and service tax on advertisement contract

Hi Rupesh,

There is no abatement specific exemption provided to the advertising services. Thus, the Service tax would be charged @ 12.36% on the value of services.

Since, you have to only pass the accounting entry, then you will have provide for TDS (I believe it is 1% / 2% depending upon the status of the payee - refer to Section 194C of the Income Tax Act, 1961).

Hello,

Service tax will be charged on Sale of space or time for advertisements in broadcast media, namely radio or television. w.e.f 01-oct-2014 The new levy would further extend to advertisements in internet websites, out-of-home media, on film screen in theatres, bill boards, conveyances, buildings, cell phones, Automated Teller Machines, tickets, commercial publications, aerial advertising,etc.  Sale of space for advertisements in print media however would remain excluded from Service tax.

For advertisement TDS to be deducted u/s 194C , Individual/Huf @ 1% & any other case 2%