Service Tax Services
¨ Clause(g) of Negative List of the new section 66D of the exempts Selling of space or time slots for advertisements. The advertisements should not be for broadcast on radio or television.
Statutory provision granting exemption
With effect from 1-7-2012, exemption has been provided to certain advertisement services. As per clause (g) of section 66D of the Act, the following is exempt:
“Sale of space and time slots for advertisement other then advertisement broadcast by radio and television”.
As per sec. 65B(2) of the Act, “Advertisement” means any form of presentation for promotion of, and bringing awareness about, any event, function, idea, unmovable property, person, service, goods and actionable claim through newspaper, television, radio, internet or any other means but does not include any presentation made in person.
Taxable service (under the Act)
- Ø Commissions received by advertisement companies from the broadcasting or publishing companies for facilitating business;
- Ø Any sale of space and time slot to be broadcast by radio, and television;
- Ø Any sale of space and time slot which would not fall within the prescribed definition of an ‘advertisement’;
- Ø Presentations made in person as these would not qualify as advertisements;
- Ø Service provided by advertisement companies relating to making or preparation of advertisement;
Scope of exemption
The essential ingredients for a service to be exempt are as follows:-
- Ø The service must be sale of space and time slots;
- Ø The intention of sale of space and time slot should be advertisement;
- Ø Advertisement should not be for a broadcast on radio, and television;
R K Kumawat & Associates
Address:G-15, Ashirwad Complex, Central Spine, Vidhyadhar Nagar, Jaipur – 302023 (Rajasthan)
Email : firstname.lastname@example.org
Phone : +91-8829035203, +91-9928399554