19 June 2009
recently a judgement had come regarding service tax to be charged on agencies preparing the hoardings and flexi boards;those person to be treated in the same way as advertising agency. if a company is reimbursing to its distributor, the expense for such hoardings and flexi boards, should the company charge service tax on it. the company is deducting TDS on such payments.
20 June 2009
The receiver of the amount has to pay service tax. Therefore your agents should collect from you and pay the same, however if they are falling under basic exemption limit of 10 lakhs they need not pay. The starting point of service tax is from your agent. TDS is from Company.