Tax on free service in radio & t.v. advertisement.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 Dear All,

I have three kind of advertisement agencies: News paper, T.V, & Radio.My business policy is if U give me add on newspaper then radio & t.v. add will be free.
Like everyone knows there is no service tax leaved on newspaper add, so I give benefit to my customer to leaved service tax.

Is my policy is reliable from the point of Service tax law???

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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05 April 2012 Dear Author,

If you are charging reasonable price for Ad in Newspaper then there will not be any service tax on ad given in T.V/Radio.
Otherwise you will have to pay service tax on difference amount.

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 Dear Amit Sir.

Can you provide any Govt. circular..

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CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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05 April 2012 Service tax(Determination of value) rules, 2006 empowers central excise officer to reject the value in the following rule-i.e rule no. 4-

4. Rejection of value.–

(1) Nothing contained in rule 3 shall be construed as restricting or calling into question the power of the Central Excise Officer to satisfy himself as to the accuracy of any information furnished or document presented for valuation.

(2) Where the Central Excise Officer is satisfied that the value so determined by the service provider is not in accordance with the provisions of the Act or these rules, he shall issue a notice to such service provider to show cause why the value of such taxable service for the purpose of charging service tax should not be fixed at the amount specified in the notice.

(3) The Central Excise Officer shall, after providing reasonable opportunity of being heard, determine the value of such taxable service for the purpose of charging service tax in accordance with the provisions of the Act and these rules.

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 thank u sir, for your kind help.