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SERVICE TAX ON PRINT MEDIA

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

Will any body tell me whether print media will attract service tax or not for F.Y.2015-16 We ordered one advertisement, the vendor charging the service tax, but we are arguing that print media will not attract service tax, please help in this regard with proper supporting.

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12 Answers
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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

A new clause (39a) has been inserted under Section 65B of the Finance Act containing the meaning of “Print Media” which is as follows: “Print media” means,— (i) “book” as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867), but does not include business directories, yellow pages and trade catalogues which are primarily meant for commercial purposes; (ii)“newspaper” as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867) B. Changes made in the Negative List of Services are as follows: Section 66D(g) of the Finance Act has been substituted with the new clause, which is as follows:- (g) “selling of space for advertisements in print media;”

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

A new clause (39a) has been inserted under Section 65B of the Finance Act containing the meaning of “Print Media” which is as follows: “Print media” means,— (i) “book” as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867), but does not include business directories, yellow pages and trade catalogues which are primarily meant for commercial purposes; (ii)“newspaper” as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867 (25 of 1867) B. Changes made in the Negative List of Services are as follows: Section 66D(g) of the Finance Act has been substituted with the new clause, which is as follows:- (g) “selling of space for advertisements in print media;” Earlier this clause reads as follows: “(g) selling of space or time slots for advertisements other than advertisements broadcast by radio or television” Hence, to broaden the tax base in Service tax, Sale of space or time for advertisements in broadcast media, namely radio or television, extended to cover such sales on other segments like online and mobile advertising, etc. Sale of space for advertisements in print media however would remain excluded from Service tax. **There is no service tax on items which are included in negative list and if your print media defination is as per the defination of finance act then ther will be no service tax on it and there is service tax on online advertising on mobiles and website advertisments which is at the effective rate of 14.5%.

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