TaxTMI 
TaxTMI 
We are the publishers of books and journals in the field of Science, Technology and Medicine. We published numerous journals both society owned and proprietary. In one of our journal, which is published online, we charge the author for publishing their article. Does it transaction involves service tax?
Applicability of Service Tax on Article Processing Charges
12 Dec 2016 
3 Replies 
4271 Views Asked by
Service tax applicability on article processing charges debated as taxable service versus manufacturing exemption; export and small-value exemptions may apply.
The central dispute is whether Article Processing Charges are a taxable service or an exempt manufacturing activity: one view treats the publisher's editing and publication facilitation as a taxable service, while the opposing view treats publication and supply of copies/reprints as a process amounting to manufacture or production of goods falling within the negative list; respondents also identify possible service-export and small-turnover exemptions if the charges are treated as services. (AI Summary)
The central dispute is whether Article Processing Charges are a taxable service or an exempt manufacturing activity: one view treats the publisher's editing and publication facilitation as a taxable service, while the opposing view treats publication and supply of copies/reprints as a process amounting to manufacture or production of goods falling within the negative list; respondents also identify possible service-export and small-turnover exemptions if the charges are treated as services. (AI Summary)