Exemption of tax

This query is : Resolved

Akhilesh Agarwal (Querist)
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23 May 2013 We have a maintenance agency and provide the maintenance services, we have taken a building on contract basis to provide the services in it, we have allotted a wall space to a advertising agency for advertising activity can its service is liable for service tax.

Jayant Bothra

Jayant Bothra (Expert)
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23 May 2013 Dear Akhilesh,

Yes, advertised is an activity and is liable to be taxed under service tax. BUT, the negative list provides that advertisement by television or radio can only be taxed, which means rest all sorts of advertisements are exempted.

So, NO SERVICE TAX ON THE ADVERTISEMENT SERVICES PROVIDED BY HIM.

Thanks & Regards
CA JAYANT BOTHRA
email: ca.jayantbothra@gmail.com
blog: cajayantbothra.blogspot.in

Akhilesh Agarwal

Akhilesh Agarwal (Querist)
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23 May 2013 Thanks Sir, but problem is that we have registered in maintenance category not in advertisement category. Kindly suggest.

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Jayant Bothra

Jayant Bothra (Expert)
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24 May 2013 Dear Akhilesh,

As per Rule 9 of Service tax rules, 1994 the liability to get register arise only when the service you are providing is taxable. In your case since the service is completely exempted so no need to take seprate registration for advertisement service.

Further if you want to get that service register also then you can do so there is no problem in that.

Thanks & Regards

CA JAYANT BOTHRA
email: ca.jayantbothra@gmail.com