Business Daily from THE HINDU group of publications
Monday, Jan 28, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Monday, Jan 28, 2008 ePaper | Mobile/PDA Version |
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Taxation Marketing - Advertising Columns - At Your Service Ad canvassing Impact advertisers carry out certain activities to help get advertisements for the Railways. In return, they are paid some commission for procuring/canvassing for the advertisements. Will these advertisers be liable to pay service tax as advertising agency? The service tax department is insisting on the same? Vinod Jain
It may be noted that advertisement and procurement/canvassing are different services. While advertising as such is taxable under advertising agency service, canvassing for advertisement shall be taxable under business auxiliary services (Section 65(19)), which includes promotion or marketing of services provided by the client. Recently, in Febin Advertisers, Palakkad vs CCE, Calicut (2007 11 STJ 205 Cestat, Bangalore), it was held that rendering help for advertisement and canvassing for the Railways is not taxable as advertising agency services. (Also refer CCE Chennai vs Team UPD Ltd (2005 179 ELT 469 Cestat Chennai) and CCE Kolkata vs The Incoda (2004 174 ELT 65 Cestat, Kolkata.) As such it is not a case of advertising services but it would appropriately fall under business auxiliary services. Service tax and Senior CitizensI am a senior citizen (70 years) and with a rental income of Rs 9 lakh per annum. I want to know whether there is any relaxation/exemption provided to senior citizens with respect to service tax, as in the case of income-tax? Uday Singh
Under the service tax law, the liability of payment of service tax falls on the service provider in all cases except where the Central Government has notified that the receiver of service tax shall be liable to pay service tax (for example, sponsorship services, mutual fund distributors, importers of services, etc). Service tax is payable under Section 68 of the Finance Act, 1994 by all service providers irrespective of age or status. In most of the services, any person who provides a taxable service is a person liable to pay service tax. There is no specific provision in service tax which provides any concession or exemption to senior citizens. The only benefit available is provided vide Notification No. 6/2005-ST dated March 1, 2005, as amended by Notification No 4/2007-ST of March 1, 2007. Accordingly, those service providers whose aggregate value of all taxable services does not exceed Rs 8 lakh per annum in the previous year can claim exemption from payment of service tax. SANJIV AGRAWAL More Stories on : Taxation | Advertising | At Your Service
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