Service Tax - advertising agency -draft remains a draft
Yesterday we carried the same caption with a question mark. Today there is no question. It is out – the circular is not to be issued. Yesterday DDT asked,
“It is nearly two months since the Board released a draft circular to the effect, "the amount paid by the advertising agency to the media for obtaining space for display or exhibition, being in the nature of input service used in providing the taxable service, is liable to be included in the value of the taxable service". This has caused the appropriate furore. Now has the government decided to bury the draft circular or go slow on it? “
DDT is happy to report that the Board has decided not to pursue this line and the print media can heave a sigh of relief. Whenever the government reacts positively to popular sentiments, it enhances the status of the government. Thank You Board!
Please see TIOL-DDT 235 - 07. 11. 2005 - Draft circular on advertisement: Some unanswered questions
F.NO.341/43/2005-TRU. Dated 7th December 2005