income received for publishing advt in our website

[felix ka]

Hai experts,

what do you think on the service tax liability under 'sale of advertising space/time' of the 'Adsense' income received from Google, USA for publishing the advertisements of their customers in our company's web-site ?Since Google is paying ST on income received from their customers (who seek the services of Google in publishing their advertisements), can we argue that the income we receive is a part of 'ST paid' amount? But advertisements on our website are not only of Indian companies and we receive income in Indian Rs (not in foreign currency) and Google no where says that what we receive is ST paid income. What is your opinion?

AI Summary

Income from Google Ads Liable for Service Tax in India, CENVAT Credit Available for Paid Tax A forum participant inquired about the service tax liability on income from Google for hosting advertisements on their website. They questioned if this income could be considered as already taxed since Google pays service tax on revenue from its clients. Respondents clarified that the company must pay service tax on the sale of advertising space, as the income is received in Indian Rupees and not in foreign currency. It was advised that they could claim CENVAT credit if service tax was paid to Google. The consensus was that the company is liable for service tax in India.