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TMI BlogPOS - Services in relation to Advertisement Services to Specified services (within India) [Section 12(14) of IGST Act ]X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 12(14) of the IGST Act, 2017, in the absence of any contract between the supplier of service and recipient of services, shall be determined, as per Rule 3 of IGST Rule w.e.f. 01 July 2017, in the prescribed manner. S. No. Mode of Advertisement Basis of allocation 1 Advertisement on newspaper and publication * The amount payable for publishing an advertisement in all the editions of a newspaper or publication, which are published in a State or Union territory, * the value of advertisement service attributable to the dissemination in such State or Union territory. Example 1:- ABC is a government agency which deals with the all the advertisement and publicity of the Government. It has various wings dealing with various types of publicity. In furtherance thereof, it issues release orders to various agencies and entities. These agencies and entities thereafter provide the service and then issue invoices to ABC indicating the amount to be paid by them. ABC issues a release order to a newspaper for an advertisement on 'Beti bachao beti padhao', to be published in the newspaper DEF (whose head office is in Delhi) for the editions of Delhi, Pune, Mumbai, Lucknow and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis of allocation 3 Advertisement on hoardings other than those on trains * The amount payable for the hoardings located in each State or Union territory, * the value of advertisement service attributable to the dissemination in each such State or Union territory. Example 3:- ABC as part of the campaign 'Saakshar Bharat' has engaged a firm IJ for putting up hoardings near the Airports in the four metros i.e. Delhi, Mumbai, Chennai and Kolkata . The release order issued by ABC to IJ will have the city wise, location wise breakup of the amount payable for such hoardings. The place of supply of service is in the Union territory of Delhi and the States of Maharashtra, Tamil Nadu and West Bengal. Allocation of value of supply, In such a case, the amount actually paid to IJ for the hoardings in each of the four metros will constitute the value attributable to the dissemination in the Union territory of Delhi and the States of Maharashtra, Tamil Nadu and West Bengal respectively. Separate invoices will have to be issued State wise and Union territory wise by IJ to ABC indicating the value pertaining to that State or Union territory . S. No. Mode of Advertisement Basi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to the "Ujjwala" scheme on the railway tickets that are sold from all the Stations in the States of Madhya Pradesh and Chattisgarh. The place of supply of service is in Madhya Pradesh and Chattisgarh. Allocation of value of supply, The value of advertisement service attributable to these two States will be in the ratio of the number of railway stations in each State as ascertained from the Railways or from the website www.indianrail.gov.in. . Let us assume that this ratio is 713 : 251 and the total bill is ₹ 9,640/- . The breakup of the amount between Madhya Pradesh and Chattisgarh in this ratio of 713:251 works out to ₹ 7,130/- and ₹ 2,510/- respectively. Separate invoices will have to be issued State wise by MN to ABC indicating the value pertaining to that State. S. No. Mode of Advertisement Basis of allocation 7 Advertisements over radio stations The amount payable to such radio station, which by virtue of its name is part of a State or Union territory. Example 6:- For an advertisement on 'Pradhan Mantri Ujjwala Yojana', to be broadcast on a FM radio station OP, for the radio stations of OP Kolkata, OP Bhubaneswar, OP Patna, OP Ranchi an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnel in the last week of September 2017 from the Broadcast Audience Research Council. Let us assume it is one lakh for Delhi and two lakhs for the region comprising of Uttar Pradesh and Uttarakhand and one lakh for the region comprising of Bihar and Jharkhand; II. since the Broadcast Audience Research Council clubs Uttar Pradesh and Uttarakhand into one region and Bihar and Jharkhand into another region, QR will ascertain the population figures for Uttar Pradesh, Uttarakhand, Bihar and Jharkhand from the latest census; III. by applying the ratio of the populations of Uttar Pradesh and Uttarkhand, as so ascertained, to the Broadcast Audience Research Council viewership figures for their channel for this region, the viewership figures for Uttar Pradesh and Uttarakhand and consequently the ratio of these viewership figures can be calculated. Let us assume that the ratio of the populations of Uttar Pradesh and Uttarakhand works out to 9: 1. When this ratio is applied to the viewership figures of two lakhs for this region, the viewership figures for Uttar Pradesh and Uttarakhand work out to one lakh eighty thousand and twenty thousand respectively; IV. in a similar manner the brea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igures published for the last quarter of a given financial year shall be used for calculating the number of internet subscribers for the succeeding financial year and at the beginning, * the figures for the last quarter of financial year 2016- 2017 shall be used for the succeeding financial year 2017-2018; * (iii) where such internet subscriber figures relate to a region comprising of more than one State or Union territory, * the subscriber figures for a State or Union territory of that region, shall be calculated by applying the ratio of the populations of that State or Union territory , as determined in the latest census, to such subscriber figures; * (iv) the ratio of the subscriber figures for each State or Union territory as so calculated, when applied to the amount payable for this service, shall represent the portion of the value attributable to the dissemination in that State or Union territory. Example 9:- ABC issues a release order to WX for a campaign over internet regarding linking Aadhaar with one's bank account and mobile number. WX runs this campaign over certain websites. In order to ascertain the statewise breakup of the value of this service which is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State, or Union territory, * the subscriber figures for that State or Union territory shall be calculated by applying the ratio of the populations of that State or Union territory, as determined in the latest census, to such subscriber figures. * (iv) the ratio of the subscriber figures for each State or Union territory as so calculated, when applied to the amount payable for that service, shall represent the portion of the value attributable to the dissemination in that State or Union territory. Illustration-10: In the case of the telecom circle of Assam, the amount attributed to the telecom circle of Assam is the value of advertisement service in Assam. Illustration-11: The telecom circle of North East covers the States of Arunachal Pradesh, Meghalaya, Mizoram, Nagaland, Manipur and Tripura. The ratio of populations of each of these States in the latest census will have to be determined and this ratio applied to the total number of subscribers for this telecom circle so as to arrive at the State wise figures of telecom subscribers. Separate invoices will have to be issued State wise by the service provider to ABC indicating the value pertaining to that State. Illustrat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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