Service tax on advertisement agency

This query is : Resolved

Darshan Arora (Querist)
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18 August 2014 Dear sir
i run newspaper advertisement agency
how much i should charge service tax
if my news paper advertisement bill is of Rs. 10,000
my commission is Rs. 1500
i passed a discount of Rs. 1000 to client
i made a bill of rs 9000 to the client
how much service tax i should charge from the client

a) weather i should charge service tax 1.84% on Rs. 10,000/-
b) or i should charge 1.84% on Rs. 9000/-
c) or i should charge 12.36% on Rs 500 (that is i actually earned)

Sagar mal Pareek

Sagar mal Pareek (Expert)
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19 August 2014 There are a number of cases of the past wherein it was held that in such cases you have to charge Service tax on yr commissiion amount only and not on the amount which you have to pay to the publisher of news paper say Times of India etc.ca.sagar mal pareek,bharuch,9824346469