TaxTMI 
TaxTMI 
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.
Serice Tax
07 Mar 2015 
2 Replies 
1703 Views Asked by
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. (AI Summary)
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. (AI Summary)
