Service Tax -on value addition

[deepak gulati]

As an agent(individual) provided in relation to advertisement in print media i sold advertisement to the client inclusive of profit margin and commission .Means we purchased from advertisement Company at ₹ 30000/-(Company is not charging any service tax as it is covered under negative list) and sold at ₹ 35000/.

Can anyone please tell me that as an agent in which service i am covered and what is service tax implication and on what value ? How to do invoicing for the same ?

Company =======> Agent ========> Client

30000 35000 (Service Tax ==?)

(without service tax )

AI Summary

Business auxiliary service: advertising resale mark-up is taxable consideration, requiring service tax on the value addition.
Supply of procured print-media advertising space with a mark-up is taxable as business auxiliary service. The agent's identifiable mark-up is the consideration for the taxable service and must be included in the taxable value; labeling part as "profit" versus "commission" does not alter valuation. The agent should invoice and segregate the service charge/commission element, on which service tax and applicable cesses are to be computed, rather than treating only a portion of the mark-up as taxable.