1. Definition of Advertisement
:'Advertisement' has been defined in
section 65 B of the Act as "any form of presentation for promotion of, or
bringing awareness about, any event, idea, immovable property, person, service,
goods or actionable claim through newspaper, television, radio or any other
means but does not include any presentation made in person."
2. Space
and Time when Taxable /Non Taxable
|
Taxable
|
Non
Taxable
|
|
Sale
of space or time for advertisement to be broadcast on radio or television
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Sale
of space for advertisement in print media
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|
Sale
of time slot by a broadcasting organization.
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Sale
of space for advertisement in bill boards, public places (including stadia),
buildings, conveyances, cell phones, automated teller machines, internet
|
|
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Aerial
advertising
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3. Services provided by advertisement agencies relating to
making or preparation of advertisements would not be covered in this entry and
would thus be taxable.
4.Commissions received by advertisement agencies from the
broadcasting or publishing companies for facilitating business, which may also
include some portion for the preparation of advertisement, is also Taxable.
5. In case of composite service of providing space
for advertisement that is covered in the negative list entry coupled with
taxable service relating to design and preparation of the advertisement,
taxability shall be determined as under :
♦ This would be a case of bundled services taxability of
which has to be determined in terms of the principles laid down in section 66F
of the Act.
♦ Bundled services have been defined in the said section as
provision of one type of service with another type or types of services.
♦ If such services are bundled in the ordinary course of
business then the bundle of services will be treated as consisting entirely of
such service which determines the dominant nature of such a bundle.
♦ If such services are not bundled in the ordinary course of
business then the bundle of services will be treated as consisting entirely of
such service which attracts the highest liability of service tax.
6. Separate contacts may be made and billed separately
for services that are specifically covered under the negative list and billed separately
for avoided classified in to bundled services.
7. Advertisements made on
Public transport System is covered in Negative list.
8. Advertisement made in a movie may not
be a sale of space or time for advisement as it is not a sale of space or time
for advertisement on radio or Television.
9. Canvassing advertisement for publishing on a commission basis by
persons/agencies is taxable.
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