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Service tax on digital marketing

CA. Tarun Mehrotra (Chartered Accountant) (24 Points)

06 January 2017

Hello, Please inform about service under which service tax is required to be deposited for Search Engine Optimization, Adwards, Digital Marketing, Website development. Thanks in Advance

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Abhishek Bhardwaj (CA Student IPCC) (10 Points)
Replied 06 January 2017

Deat Tarun Mehrotra,

Earlier in 2014 exemption of service tax on digital marketing is removed by Mr. Arun Jetly ji.

So After September 2014 service tax on this will be levy at the rate of 15%(14%+0.5%+0.5%) on online website or mobile advertisement(marketing).

If you are providing SEO service in Taxable Territory then it will be taxable otherwise not.

Designing(Devlopment) of websites is taxable. However creation and development of a complex website is not limited to designing activity. It involves complete software engineering service for coding. Therefore, since only designing activity is included in the definition of Design Service, development and complex coding of a web site which requires services of software engineer, which is not liable to service tax And also Selling of web space and domain name is not a taxable service

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CA. Tarun Mehrotra (Chartered Accountant) (24 Points)
Replied 06 January 2017

Respect your knowledge, but the answer is not correct. I am also aware of the things you have mentioned. My concern is under which Taxable service do they fall in. Business Auxilliary or Advertisement Agency.

Vishu Singh (2 Points)
Replied 12 May 2023

Search Engine Optimization (SEO): SEO involves optimizing your website and content to rank higher in search engine results pages (SERPs) for relevant keywords and phrases. SEO strategies include on-page optimization, off-page optimization, content creation, and technical optimization.
Pay-Per-Click (PPC) Advertising: PPC advertising involves placing ads on search engine results pages or other websites and paying each time a user clicks on your ad. PPC campaigns can target specific keywords, demographics, and geographies.
Social Media Marketing: Social media marketing involves using social media platforms like Facebook, Instagram, and Twitter to promote your brand, engage with your audience, and drive traffic to your website. Social media strategies can include organic posting, paid advertising, and influencer marketing.