Space in Print media - Liability and taxability under which category

[paresh zatakia]

one person buys space in print media e.g.Times of India, and sells to his customers,earns margin of 15%.He does not prepare bromide,ad draft etc. is he liable to service tax? if yes under which section? on which amount his margin or total sale value?

[Surender Gupta]

If the activity is neither related to advertisement service or sale of space, then the commission received from sale of space in the print media will be taxable under "Business Auxiliary services".

[Madhukar N Hiregange]

He is liable under advertisment agent. He could also be catgeorised under Busienss Auxliary service since he is only earning a commision as a commision agent. In my view the first category is more specific therefore appropriate. If ion 1st then only on commision. If in second there maybe no ST as he is merely a service reseller.

AI Summary

Advertisement agent classification determines service tax liability and taxable value limited to commission. When a person purchases print-media space and resells it for a margin, the critical issue is classification: if characterised as an advertisement agent, the receipt is commission income taxable as such and the taxable base is the commission earned; if characterised under business auxiliary services or as a reseller, the chargeability and taxable base may differ and must be determined by whether the provider is supplying the underlying placement service or merely reselling space.