Service tax on advertisement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2012 I have received msg from google, but while seeing negative list of service tax such service is not mentioned, pls suggest me...
following msg is received..

"Due to a recent change in Indian tax regulations, the service tax rate for advertising services supplied by Google India Private Limited will change. The rate will be reduced from the current rate of 12.36% to 0% (zero percent). Given that Education Cess and Secondary & Higher Education Cess are calculated as a percentage of the service tax, we will also no longer charge these taxes. This change will take effect for all AdWords invoices dated on or after July 1, 2012.

Please note that Google cannot advise you on tax matters and recommend that you contact your tax adviser for any questions regarding this change.

The tax exemption details (negative list) can be found in the Finance Act, 2012 (Clause 143). In particular, the 17 services that comprise the negative list can be found at Section 66D. The sale of advertising space or time slots is included under (G) Section 66D. Notification No 19/2012-Service Tax appoints the 1st day of July, 2012 as the date from which the provisions of clauses (C), (F), (G) and (I) of the Finance Act, 2012 (Act No 23 of 2012) shall come into effect."
Pls suggest me as soon as possible.........

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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06 July 2012 As per Guidance Note no. 4.7.1 of TAXATION OF SERVICES: AN EDUCATION GUIDE dated june 20, 2012 Sale of space for advertisement in bill boards, organization. public places (including stadia), buildings,
conveyances, cell phones, automated teller
machines, internet is not taxable service and the same are given in the negative list of services.

So, Google is not liable for service tax for services provided by him for advertisement.

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2012 but while seeing negative list of service tax i am unable to find it, can u pls give me negative list where u read it?

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CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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06 July 2012 Negative list says that Selling of space or time slots for advertisements other than advertisements broadcast by radio or television.

it means that only advertisement by Radio and television is taxable.