TaxTMI 
TaxTMI 
Applicability of Service Tax on Article Processing Charges
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....pplicability of Service Tax on Article Processing Charges<br> Query (Issue) Started By: - Rohit Kapoor Dated:- 12-12-2016 Last Reply Date:- 21-12-2016 Service Tax<br>Got 3 Replies<br>Service Tax<br>We are the publishers of books and journals in the field of Science, Technology and Medicine. We published numerous journals both society owned and proprietary. In one of our journal, which is published....
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.... online, we charge the author for publishing their article. Does it transaction involves service tax? Reply By Ganeshan Kalyani: The Reply: Yes , it is service and shall attract service tax. Reply By KASTURI SETHI: The Reply: In my view, it is covered under the category, "Other Than Negative list". Thus I concur with the views of Sh.Ganeshan Kalyani, Ji, an expert Reply By Rupesh G....
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....upta: The Reply: Dear Mr. Rohit just like you I am also in the same trade and situation. We are publishing since 15 years now and only recently I came to know that some fellow STM publishers are charging service tax on Article Processing Charges which was shocking for me so I searched extensively on the net and found following articles: 1. http://taxguru.in/service-tax/implications-service-tax-p....
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....rinting-industry.html 2. https://www.taxmanagementindia.comhttps://www.taxtmi.com/forum/issue?id=472 3. http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=16003 which support the view that publication/printing of Books/Journals/Newspapers is totally exempt from Excise/VAT/Service tax as it is a manufacturing process and as per clause (f) of section 66D of the Service....
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.... Tax Act 'processes amounting to manufacture or production of goods' is a service covered under 'Negative list'. We supply certain copies of the Journal and/or the article (Repritns) in hard/soft format to author which is a product manufactured/produced by the publisher and the charges we receive are for that only hence it is a manufacturing activity exempt from Service Tax. Excise and VAT is appl....
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....icable on manufacturing activities but in case of publication of Books/Journals the rate is ZERO hence no need to worry about that also. The only tax we need to pay is Income Tax. In view of above I would like to know the views of Sh.Ganeshan Kalyaniji and other experts to get some clarity. Scenario 2: In case we assume that somehow these charges can be defined as service and service tax is appl....
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....icable the situation become a bit trickier. We charge these to authors who can be within India or outside India. In case of foreign authors will it not fall under "Service Export" which again is exempt from service tax and for Indian authors, if the amount in a FY is less than 10 Lakhs, I understand it is also exempt. Please clarify Sir.<br> Discussion Forum - Knowledge Sharing ....