My client is an advertising agency. he purchases ad space in the newspapers like DNA/HT etc.
he sells the space to his clients who want to advertise.
my client pays to the publisher say Rs.180000/- and my client charges to the client Rs.200000/-. his commission is Rs.20000/- only.
my question : 1. is service tax applicable on payment received by my clinet (ad agency) from the person whose goods/services are advertised ? and
2. Rate of service service tax i.e. entire 200000 will be subjected to service tax or only Rs.20000/-. thanks in advance waiting for your reply.
CAclubindia
