Is service tax applicable for
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 October 2013
I sell Advertising Space for overseas Print Media in India. Earlier selling of space for advertisements other than advertisements broadcast by radio or television were exempt from Service TAX
has the rule been amended is it still
in the Negative List.
Would appreciate if someone could give their valuable opinion.
Thanks in anticipation.
has the rule been amended is it still
in the Negative List.
Would appreciate if someone could give their valuable opinion.
Thanks in anticipation.
25 October 2013
It will be exempt from service tax under negative list of services.
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 October 2013
Thanks for your Prompt response on my query however in the earlier Negative List it clearly mentioned Media Sales for Print Advertisement was exempt from Service Tax in the new List of Services applicable from August 2012 there is no clear mention of the same.Hence am confused. Please do let me know thanks - Sam.
01 August 2024
The confusion arises from the changes in the Service Tax regime and the introduction of the Negative List under the Finance Act, 2012, which significantly altered the taxation of services in India.
### Background
Before the introduction of the Negative List, "selling of space for advertisements other than advertisements broadcast by radio or television" was exempt from Service Tax. However, with the introduction of the Negative List on July 1, 2012, the framework for Service Tax changed, and only services explicitly mentioned in the Negative List or Mega Exemption Notification were exempt from Service Tax.
### Negative List and Mega Exemption Notification
1. **Negative List (Section 66D of the Finance Act, 1994)**:
- The Negative List specifies services that are not subject to Service Tax. Selling of space for advertisements in print media was included in the Negative List when it was first introduced.
2. **Mega Exemption Notification No. 25/2012-ST**:
- This notification lists various services exempt from Service Tax. The relevant clause for advertisements in print media is Clause 5(a), which exempts "selling of space for advertisements in print media."
### Definition of Print Media
- "Print Media" is defined to include newspapers and books but does not include business directories, yellow pages, and trade catalogues which are primarily meant for commercial purposes.
### Applicability to Overseas Print Media
- If you are selling advertising space for overseas print media, the place of provision of service rules need to be considered.
- The Place of Provision of Services Rules, 2012, will determine whether the service is taxable in India. Generally, the place of provision for services relating to immovable property (which includes advertising space) is where the immovable property is located.
- If the print media is physically located outside India, the place of provision is outside India, and Service Tax may not be applicable.
### Changes and Current Status
As of the latest updates:
1. **Print Media Advertising**: Selling of space for advertisements in print media continues to be exempt from Service Tax.
2. **Overseas Print Media**: The exemption applies as long as the service meets the criteria of being provided in print media as defined and the place of provision rules indicate the service is provided outside India.
### Conclusion
Selling advertising space for print media, including overseas print media, remains exempt from Service Tax under the Negative List and Mega Exemption Notification, provided the print media meets the definition and place of provision rules.
To ensure compliance and avoid any issues, it is recommended to:
1. **Review the latest provisions**: Check for any recent amendments or notifications that may affect the applicability of Service Tax.
2. **Consult with a Tax Professional**: A tax advisor or consultant can provide specific advice based on the latest laws and your particular business scenario.
### Reference to the Legal Texts
- **Negative List (Section 66D)**: [Finance Act, 1994](https://www.cbic.gov.in/resources//htdocs-cbec/finact2016.pdf)
- **Mega Exemption Notification No. 25/2012-ST**: [Notification](https://www.cbic.gov.in/htdocs-servicetax/st-notifications/st-notifications-2012/st25-2012)
These references will help ensure you are looking at the most current and applicable laws.
### Background
Before the introduction of the Negative List, "selling of space for advertisements other than advertisements broadcast by radio or television" was exempt from Service Tax. However, with the introduction of the Negative List on July 1, 2012, the framework for Service Tax changed, and only services explicitly mentioned in the Negative List or Mega Exemption Notification were exempt from Service Tax.
### Negative List and Mega Exemption Notification
1. **Negative List (Section 66D of the Finance Act, 1994)**:
- The Negative List specifies services that are not subject to Service Tax. Selling of space for advertisements in print media was included in the Negative List when it was first introduced.
2. **Mega Exemption Notification No. 25/2012-ST**:
- This notification lists various services exempt from Service Tax. The relevant clause for advertisements in print media is Clause 5(a), which exempts "selling of space for advertisements in print media."
### Definition of Print Media
- "Print Media" is defined to include newspapers and books but does not include business directories, yellow pages, and trade catalogues which are primarily meant for commercial purposes.
### Applicability to Overseas Print Media
- If you are selling advertising space for overseas print media, the place of provision of service rules need to be considered.
- The Place of Provision of Services Rules, 2012, will determine whether the service is taxable in India. Generally, the place of provision for services relating to immovable property (which includes advertising space) is where the immovable property is located.
- If the print media is physically located outside India, the place of provision is outside India, and Service Tax may not be applicable.
### Changes and Current Status
As of the latest updates:
1. **Print Media Advertising**: Selling of space for advertisements in print media continues to be exempt from Service Tax.
2. **Overseas Print Media**: The exemption applies as long as the service meets the criteria of being provided in print media as defined and the place of provision rules indicate the service is provided outside India.
### Conclusion
Selling advertising space for print media, including overseas print media, remains exempt from Service Tax under the Negative List and Mega Exemption Notification, provided the print media meets the definition and place of provision rules.
To ensure compliance and avoid any issues, it is recommended to:
1. **Review the latest provisions**: Check for any recent amendments or notifications that may affect the applicability of Service Tax.
2. **Consult with a Tax Professional**: A tax advisor or consultant can provide specific advice based on the latest laws and your particular business scenario.
### Reference to the Legal Texts
- **Negative List (Section 66D)**: [Finance Act, 1994](https://www.cbic.gov.in/resources//htdocs-cbec/finact2016.pdf)
- **Mega Exemption Notification No. 25/2012-ST**: [Notification](https://www.cbic.gov.in/htdocs-servicetax/st-notifications/st-notifications-2012/st25-2012)
These references will help ensure you are looking at the most current and applicable laws.
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