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Sandeep V. Adsul

Sandeep V. Adsul (Querist)

30 January 2014 Respected Sir,

I want to confirm that how much (%) should be charged by Advertisement Agencies?

AVTAR SINGH

AVTAR SINGH (Expert)

30 January 2014 Selling of space or time slots for advertisements is exempt. Apart from this the value of taxable services in relation to service provided by an advertising agency to a client is the gross amount charged by such agency from the client for services in relation to advertisements. This includes the gross amount charged by the agency from the client for making or preparing the advertisement material, irrespective of the fact that the advertising agency directly undertakes the making or preparation of advertisement or gets it done through another person as well as the commission received by the agency. However, the amount paid excluding their own commission by the advertising agency, for space and time in getting the advertisements published in the print media (i.e. newspapers, periodicals, etc.) are not includible in the value of taxable service. , and the present rate is 12.36%.

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