2023 (5) TMI 243

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....x. Apart from this, the Print media or TV media also gives certain incentives based on the turnover generated by them from the Appellant. The Department has taken the view that Service Tax is required to be paid even on such incentives received by the Appellant from the media. The demand of Rs.16,93,034/- was confirmed at the lower levels. Aggrieved by the same, the Appellant is before the Tribunal. 2. The Appellant submits that he has service provider and client relationship only with his clients who give them the material for advertising to be published in media or to be telecasted in TV. For rendering such services they are already paying Service Tax on the commission received from the clients. There is no Agreement between the Appellan....

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....lients who are the advertisers. On behalf of these advertisers, the appellant has placed advertisements in the print/electronic media. The choice of the print/electronic media is with the advertiser and not with the advertising agency, who merely co-ordinates between the media and the advertiser. On the agency commission received, they have discharged service tax liability. Similarly, the electronic media also discharges service tax liability on the consideration received for broadcasting which includes incentives, if any, to be paid. Thereafter, at the end of the year, depending upon the volume of business given by the advertising agency, the media gives certain incentives by way of volume discounts/rate difference. There is no agreement o....

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....nts are liable to service tax. With regard to the relationship between the advertising agency and the media, the advertising agency has to pay amount to the media and not the other way. To put it differently, the media such as broadcasting agency charges the advertising agency for insertion of the advertisement either in Print Media or in Television. In the present case, the media gives a discount of 15% to the advertising agency. If the Tariff rate is Rs. 100/-, it is sufficient the advertising agency pay the media Rs. 85/- along with service tax. The service tax component received from the advertising agency in turn is remitted to the exchequer by the media agency. The appellants have demonstrated that they have not received any amount fr....