Taxability of service tax - space selling service

[Guest]

In the case of new service introduced 'Space Selling Services', if a TV serial producer bills to another adv. agency for selling time for advertisement. And, that another adv. agency bills it to ultimate client for the same. In this case, will the TV serial producer charge the service tax in his bill to another adv. agency? Or, will the another adv. agency charge the service tax on their bill to ultimate client?

[Surender Gupta]

If the advertisement agent is merely getting the commission, bill for "Space Selling Services" should be raised in directly to the ultimate clinet, otherwise, it should be billed on the Agent and agent will bill to the client.

[Guest]

My original question remains unanswered as to whether TV producer shall charge service tax on his bill to the adv. agency or adv. agency shall charge service tax on his bill to the ultimate client?

AI Summary

Space Selling Services tax liability hinges on whether the advertising agency is a mere commission agent or acts as principal. If the advertising agency acts merely as a commission-taking agent, the bill for Space Selling Services should be raised directly to the ultimate client. If the agency is not a mere commission agent, the taxable service may be billed to the agency, and the agency will bill the ultimate client, so tax collection occurs at the agency level.