Serice Tax

[Hardik Sharma]

HI!! Are vouchers issued by a company to newspaper company in lieu of advertisement services provided by newspaper company liable to service tax on issue of vouchers by the former company? Please clarify.

[Rajagopalan Ranganathan]

Sir,

The news paper company provides you advertisement service to you. Therefore the news paper company is liable to pay service tax. A service receiver you are not liable to pay service tax. Moreover, issuing a voucher is not s service at all.

[Hardik Sharma]

Thanks Sir!!

AI Summary

Service tax liability: issuer of vouchers is not liable; advertiser providing newspaper ad services bears the tax obligation. Service tax liability for newspaper advertising lies with the newspaper as service provider; the recipient company is not liable. Issuing vouchers by the recipient company in lieu of advertisement does not amount to a separate taxable service, so the tax consequence attaches to the newspaper's provision of advertising rather than to the voucher issuance.