TaxTMI 
TaxTMI 
2024 (8) TMI 1697
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....nt. 2. The facts of the case are that the respondent is providing services of advertising under the category of "Advertising Services". 2.1 During the course of scrutiny of Balance Sheets, ST-3 Returns, Bills and letter dated 25.03.2013 of the respondent by the Revenue, it was revealed that the respondent was providing advertising services as under : (i) Print Media : News Papers, Magazines, Periodicals etc. (ii) Electronics Media : T.V., Radio, F.M. Channels etc. (iii) Outdoor Media : Organize/arrange exhibition stalls, pavilion, road show, mobile publicity etc. It was found that the services rendered by the respondent falls within the definition of taxable service under Section 65 (105)(e) of the Act, w....
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....nlike other commodities on their own. (b) Advertising agency, who gets space for advertisement in print media for the client, is authorized to charge only such amount as indicated by the supplier of service in print media. (c) Invoices issued by the print media for sale of space for advertisement in print media through the advertising agency should contain the name of the client i.e. actual consumer of the service. (d) Advertising agency is required to collect the amount as indicated by the print media from their client and transfer the amount to the print media after retaining the commission due to advertising agency. 4. Sale of time for advertisement in electronic media is laviable to service sex under ....
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....ct of Electronics Media, and Design & Artwork the said noticee was paying taxes on 100% value after availing Cenvat Credit facility CENVAT credit facility but in respect of Print Media and Printing Works where no CENVAT credit facility available they were keeping up to 85% of value out of tax net. This way they have suppressed total taxable value of Rs. 59,64,12,540/- only involving Service Tax of Rs. 6,57,00,729/ only (including Edu Cess and S & H Edu Cess) as reflected in S.T. - 3 returns while compared between Balance Sheets and ST-3 returns for the period 2007-08 (Oct 07 to Mar 08) to 2011-12. The said noticee did not pay service tax of Rs. 6,57,00,729/ including cess on the gross amount of taxable service amounting to Rs....
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.... to the client i.e. actual consumer of the service. They stated that under Section 65(105)(zzzm) of the said Act cost of space in print media (newspaper, magazine, trade journals etc.) is exempted from service tax irrespective of advertisement is placed by advertiser directly or through an Advertisement Agency. Their bill/invoice issued to the service receivers Le, advertisers/clients was of 'Gross Value' Le. charged by the publisher of the Print Media, consist of 85% cost of the print media space 15% of the agency Commission/Trade Discount/Rebate allowed by the publishers of the print media to them. Therefore, charge of their services to the service receiver was only 15% of the gross value They stated that as per the definition of ....
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....ance, Department of Revenue, Government of India being F. No. 332/4/2008-TRU dated 05.05.2008. I find that the contention of the said noticee in this regard is justified. I find that they used to raise invoices to their clients for the gross amount billed by the print media. I find that the said noticee has earned 15% Commission/Trade Discount/Rebate on the amount realized against service provided by them. They have also charged service tax on the said commission amount and discharged their service tax liability. In this context the Circular of Ministry of Finance, Department of Revenue, Government of India being F. No. 332/4/2008-TRU dated 05.05.2008 states that "Sale of space for advertisement in print media does not attract service tax. ....