Selling time slot for advertisement on internet

[satbir singhwahi]

Selling time slot for advertisement on internet, if cenvat taken fully for other taxable service . Then 6 percent has to be paid for Selling time slot for advertisement on internet. Is this correct treatment.

[Guest]

This is one of the option. Alternatively, you can maintain separate books of account showing the value of taxable as well non taxable service and can reverse the credit attributable to non taxable services. Another option is to reverse as per Formula provided under Rule 6(3A) of CCR by complying with the prescribed procedure. 

[Madhukar N Hiregange]

Since the credits may not be very high the 6 percent reversal option may not be economically viable/. The proportionate reversal method under 6(3) is preferable if possible.

AI Summary

Service tax liability for selling online ad time: choose presumptive reversal or proportionate reversal under the reversal rules. Selling time slots for internet advertisements attracts service tax liability where cenvat credit has been claimed; taxpayers may either elect a presumptive reversal at the standard presumptive rate, maintain separate books and reverse credit attributable to non taxable services, or follow the prescribed formulaic reversal procedure under the rules, with the proportionate or formulaic reversal generally preferred where economically viable.