Annual subscription for business magazine from USA -payment of Service Tax in India.

[vinay wakde]

We have paid annual subscription for business magazine to be received from foreign country i.e. from USA. Kindly let us know whether we have to pay service tax under reverse charge method?

Regards,

VINAY

[YAGAY and SUN]

Dear Vinay,

Magazines/Periodicals are treated as goods.  Hence, there would not be any service tax on the subscription of Magazines etc. Provisions of Notification No. 30/2012-ST/20-06-2012 w.e.f. 01-07-2012 would not be applicable on such transactions.

Regards,

Team YAGAY & SUN

(Indirect Tax Consultants)

AI Summary

Treatment of magazines as goods means foreign magazine subscriptions do not attract service tax under reverse charge. Magazines and periodicals are classified as goods; accordingly, subscription supplies of magazines received from abroad do not constitute taxable services and do not attract service tax under the reverse charge mechanism, and the cited notification provisions are not applicable to such transactions.