Service tax on online promotion

TinaM (...) (43 Points)

15 June 2013  

Dear Sir/Madam,

My client makes online Promotion on portals like Facebook,Google,etc wherein he charges rate difference plus commission.

For Example: If Facebook charges charges him 80, my client would charge 80 + 20 (rate difference) + 10 (commission)to his clients. Kindly tell me as to on what amount should the service tax be charged ?

on 20+10 ?

on 80+20+10?

on 10?

As per entry (g)of the negative list Selling of Space or Time Slots for Advertisements other than Advertisements Broadcast by Radio or Television are not taxable under Service tax.

So should that 80 be deducted and on balance 20+10 Service Tax should be levied or on the total gross amount ??

If my client do not wish to reveal his margin(20) than on what amount the service tax should be levied ?