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My question is : Upto the last year there was no service tax levyed on renting space for ads .
But now the FM levyed 12% tax for ad spaces other than print media, is it includes web advertisements
this is neither a service nor a product. it is kind of an affiliation. i am not sure if an affiliate program is taxable in service tax in india
it is covered in income tax anyways. anyone of you paying that? ( i am .. since begining )
BEFORE THE AUTHORITY FOR ADVANCE RULINGS, NEW DELHI
Justice Syed Shah Mohmmed Quadri, Chairman, Shri Somnath Pal and Dr. B. A. Agrawal, Members
IN RE: GOOGLE ONLINE INDIA PRIVATE LIMITED.(GIPL)
Ruling N. AAR/30/2005, dated 13-12-2005 in application number AAR/44/58/ST/2005
Advertising services - Service Tax - providing/selling space on 'Google Website' - Even by merely providing/selling space for display or exhibition of andvertisement, would be providing a service to the advertiser/clients - Covered by defination of advertising agency within Clause(e) of Sub section(105) of section 65 of finance Act 1994.. . . . . ..
It is printed in service tax review book 1st Jan. 2006 page 173 to 184.
To cut short on adsense
Adsense for Content: Under this methodology the website owner is an online publisher. . . . . .The publisher is paid a percentage of revenue earned by Google from the advertisers. . . . .
In observation number 3
It is also denied that 'Adsense for Search' and 'Adsense for content' result in providing add on services to the advertiser. It is submitted that no extra charges are to be paid by the advertisers for these services which are optional.
After reading all i can say this was especially for Adwords and with noting of AdSense that online publishers do not provide service to advertisers. The services are provided by Google. There is no clear mention though those publishers (online publishers) are exempted as this was for reviewing only Adwords services in India by Google.
I will be happy if there is no Service Tax, but i want to know whether we have to pay or not. That's why i have started this thread
Thanks for raising an important topic for discussion.