Home Case Index All Cases Service Tax Service Tax + AAR Service Tax - 2016 (5) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 456 - AAR - Service TaxAdvertising agency service on commission basis - promotion or marketing services to the Media Owners or not - Revenue submits that as far as proposed Business Model-1 is concerned, the volume discount received by the applicant for the services provided to the Media Owner is liable to Service Tax. - Two business models - Model (1) Placement of advertisement in traditional media on behalf of the advertiser - Modes (2) Buying and selling of advertisement inventory in non-traditional media, on its own account. Held that:- In proposed Business Model 1, while the applicant shall be appointed by its clients i.e. the advertiser to provide services, incidental receipt of incentives/volume discounts from Media Owner shall not be considered to be providing a service, as defined under the Finance Act, 1994, to the Media Owner and shall not be liable to Service Tax. In proposed Business Model 2, while the applicant shall buy and sell the media inventory on its own account to the advertiser, incidental receipt of incentives/volume discounts from Media Owner shall not be considered to be providing a service, as defined under the Finance Act, 1994, to the Media Owner and shall not be liable to Service Tax. In both the Models, there is no service tax liability.
|