10 February 2013
I am sub agent, taking ad in newspaper from my client & give it to main agent, ad in new paper is come under negative list and not taxable service for main agent. my query is, as a subagent i should charged service tax or not ? before July2012 i charged 1.55% on net service and paid accordingly. Please clarify urgently. Thanks & Regards
11 February 2013
The Services of Advertisement agency is different from Advertisement as per the Judgment of Hon'ble Madras High Court in the case of Advertising Club v. CBEC[2002]121 Taxmann 287. What is going to publish in the newspaper and the manner of presentation in the newspaper is the job of Advertisement agency. Crux: Section 66D Clause (d)only exempt the Press Media or Electronic Media and not the Sub Agent or Main Agents working as Advertisement Agency.
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