Applicability of service tax - Publications in exhibitions

[mahesh nandwani]

One of our client organises the exhibition for which it is registered with the Service tax department. It also publish a catalogue with the names and particulars of all the exhibitors. This is cuopmulsory for all exhibitors. The cost of this is Rs. 5000. This has been the practice in all our previous exhibitions. They do not charge service tax on this amount. What we would like to know is whether we are required to do so or can we continue with charging just the Rs. 5000. Your opinion will be most helpful. Whether this can be treated as sale and a seperate invoice can be raised. If it can be billed seperately, it attracts Sales tax. Can we add it to the service tax bill to avoid sales tax registration. thanks

[Madhukar N Hiregange]

The catalogue if priced and available/ sold to general public for a price then only under sales tax. If prepared for the exhibitors and exhibitor charged then it would be liable in the light of the budget changes.

AI Summary

Service tax applicability: catalogue charges to exhibitors treated as taxable service, public sales attract sales tax. Where a catalogue is offered for sale to the general public it is subject to sales tax; where it is prepared for and charged to exhibitors it is not a public sale and should be treated as part of the organiser's taxable service receipts under service tax, reflecting budgetary changes to taxability.