TaxTMI 
TaxTMI 
Service tax on print media was in negative list in the year 2014-15....but now a query had been raised that as an advertising agency you were required to pay ST. What's the real part
Print Media
25 Sep 2019 
3 Replies 
6058 Views Asked by
Guest 
Service tax on advertising agencies applies to gross fees and commissions, excluding payments for media space or time.
Service tax on advertising agencies is computed on the gross amount charged to clients for advertisement services, including fees for creating advertisement material, while amounts paid by the agency for media space or time are excluded from the taxable value; however, agency commission and similar fees are includible and taxable. Sale of space in print media is non-taxable, whereas sale of broadcasting time is taxable, so classification of each revenue item is determinative of tax liability. (AI Summary)
Service tax on advertising agencies is computed on the gross amount charged to clients for advertisement services, including fees for creating advertisement material, while amounts paid by the agency for media space or time are excluded from the taxable value; however, agency commission and similar fees are includible and taxable. Sale of space in print media is non-taxable, whereas sale of broadcasting time is taxable, so classification of each revenue item is determinative of tax liability. (AI Summary)