advertising agencyes

[rida khan]

sir i want to knw if an agency who take a contract of a ad then who all are liable to pay tax..

such as modal

technicians

cameraman

makeupman

trnspot

location hire

hum in logo ko b services tax cut kar k pay karna hota hai kya??

[CASeetharaman KC]

In case of Advertiseent agencies, the services rendered by the Ad agency for preparation, designing , construction of any ad material shall be taxable. Mostly in case of Ad business, 15% commission is received on the total billing of the advertisement. This amount is subject to service tax. In some cases retainership is paid on monthly or quarterly basis which is also subject to service tax. Cenvat credit can be taken on service tax paid on services received from various agencies like technicians, cameraman etc.

AI Summary

Service tax liability applies to advertising agency commissions and retainers, with cenvat credit for outsourced service providers. Services rendered by an advertising agency for preparation, designing and construction of advertisement material are taxable; agency commission on total billing and retainership payments are subject to service tax. The agency may claim cenvat credit for service tax paid on services received from third party providers such as technicians and cameramen.