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?

AI Summary

Debate Over Service Tax on Print Media Space Sales: Business Auxiliary Services vs. Advertisement Agent Classification A discussion on a forum addresses the issue of service tax liability for a person who buys and sells space in print media, earning a 15% margin without creating ad drafts. One participant suggests that if the activity is unrelated to advertisement services or space sales, the commission earned is taxable under 'Business Auxiliary Services.' Another participant argues that the individual could be categorized as an advertisement agent, which would make them liable for service tax on the commission. If categorized under Business Auxiliary Services, there might be no service tax as the individual is merely a service reseller.