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What is service tax rate for Advertisement agency?

rajendra (student) (95 Points)

17 November 2010

I am planning to open outdoor advertising agency, initially I will start one roadside hoarding .I expected 8 to 10 k per month income from this nd yearly is 1to 1.2 lakh. Pls anyone guide me • Need I register Service tax? • What is service tax rate for Advertisement agency? • I heard from my friend income exemption of Rs 8 lakh is admissible to small service providers, is it right? • If this is true should I collect service tax from client or not on above income • On above service several charges comes like ,labour charge ,printing charge or monthly rent etc Service tax charges to all services or only on rent pls guide • rjbhosale @ yahoo.com

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3 Replies

BIJAY KUMAR MOHANTY (Firm) (26 Points)
Replied 19 November 2010

Thanks Mr. Mehta. It means, there is no way that he can deposit the ST received by him one time with the Govt as a bonafide person instead of returning the amount to to the payee ?

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Muthukumaran (Accountant) (35 Points)
Replied 31 August 2011

We have started Directory publishing, and have to collect amount from the customers for advetising their product in our direcory. While taking money from them, Wheather we have to povide any Tax Invoice? can we issue a cash receipt to them. Otherwise, if there is any Tax what is the rate of Tax. Please clarify the below mentioned doubts.

1. What type of Invoice we have to give the customers?

2. what is the rate of Tax to be deducted?

3. what is the accouning treatment?

Please guide me and mail me at : muthu.avani @ gmail.com.

Thanks & Regards

Muthu

jaganathan (accounts executive) (272 Points)
Replied 31 August 2011

You should rise invoice for every sales with inclusion of service tax 10.3%, Receipt is nothing but the proof of amount recd. from the vendor.

If your total turnover crosses 10lacs you should get service tax no.
the service tax rate for advertising services is 10.3% (service tax 10%, education cess 3%)

if you claim 10000/- as advertising charges from your client

Advertising charges A/c Rs.10000/-
Service Tax A/c Rs. 1030/-
To Vendor A/c 11030/-
(being advertising charges claimed)