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Service Tax -on value addition

Service Tax - Started By: - deepak gulati - Dated:- 22-2-2016 Last Replied Date:- 24-2-2016 - As an agent(individual) provided in relation to advertisement in print media i sold advertisement to the client inclusive of profit margin and commission .Means we purchased from advertisement Company at ₹ 30000/-(Company is not charging any service tax as it is covered under negative list) and sold at ₹ 35000/.Can anyone please tell me that as an agent in which service i am covered and what .....

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, - (i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) promotion or marketing of service provided by the client; or [ * * * * ] (iii) any customer care service provided on behalf of the client; or (iv) procurement of goods or services, which are inputs for the client; or   [Explanation. - For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, inputs means all goods or services i .....

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and includes services as a commission agent, [but does not include any activity that amounts to manufacture of excisable goods]. [Explanation. - For the removal of doubts, it is hereby declared that for the purposes of this clause, - (a) commission agent means any person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt of services, for a consideration, and includes any person who, while acting on behalf of another person - (i) deals with goods o .....

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urchas bill and sale bill. Hence service charges can be easily separated and thus identifiable. You may be thinking about treating ₹ 35000/- as cum-tax price but here this is not the situation.The amount of ₹ 5000/- will be treated as commission/taxable value. This service cannot fall under the category of 'Intermediary Services' under Rule 2 (f) of Place of Provision of Services Rules, 2012 as it falls under exclusion clause (service being provided in your account.) This is .....

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epak Gulati Ji, Pl. see the definition of 'Consideration' in Explanation to Section 67. Note the words, 'Any Amount Payable' . This definition does not make difference between profit and commission. You received the amount of ₹ 5000/- because of taxable service. You will invite litigation, if ST paid on ₹ 1000/- only. You may seek other experts' opinion. I have given my opinion. - Reply By CS SANJAY MALHOTRA - The Reply = Dear Mr. Deepak, Legal opinion of Sir Sh. .....

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clarified the following issues- 004.01 / 23.08.07 Persons / agencies canvass advertisements for publishing, on commission basis. Such persons / agencies do not provide any other services like making, preparation, display or exhibition of advertisement. Whether merely canvassing advertisement for publishing on a commission basis by persons / agencies is classifiable as Advertising Agency service [section 65(105)(e)] or not? Merely canvassing advertisements for publishing, on commission basis, is .....

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