2013 (8) TMI 338

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....or telecasting their serial/episodes and paying telecast fees with service tax, who pay service tax on the telecast fees under 'Broadcasting Service'. The applicant availed service tax paid on telecast fees as Cenvat Credit as input service credit. The T.V. Channels/broadcaster allowed the applicant to use commercial advertisements to the extent of 240 seconds on Free Commercial Time (FCT) out of 30 minutes. The applicant is selling the FCT to the advertising agency for broadcasting the advertisements and paying service tax under the category of 'Sale of Space or Time for Advertisement'. The applicant utilized Cenvat credit of service tax paid on telecast fees for payment of service tax on output service 'Sale of Space or Time for Advertise....

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....he free commercial time is subsequently sold to advertising agency and the appellant collects fixed cost, variable cost. The appellant had paid service tax on these amounts under the category of 'Sale of Space or Time for Advertisement Service'. The ST-3 return filed by the appellant and the statement for the period April 2006 to September 2997 clearly indicates the inclusion of fixed cost in the taxable value for the purpose of service tax. This was also pointed out before the Commissioner of Service Tax and the same was not taken into consideration. The fixed cost ie. broadcasting charges recovered from the client has been taken into account in the value as reflected in the ST-3 return and service tax was calculated accordingly. d) The....