The services envisaged to be taxed under the given head of taxable service are in relation to sale of space or time for advertisement, in any manner; but does not include sale of space for advertisement in print media and sale of time slots by a broadcasting agency or organisation. It is apprised that time slot sale by the broadcasting agency is not taxable under this category, eg sale of time slot by Star TV to the producer of the programme. However, if the producer sells the allotted time slot to any other person to advertise his or her goods or services, then that is subjected to service tax under this category. Selling of space or time for advertisements such as advertisements in conveyances, advertisement through ATM, internet, advertisements on buildings etc. is also chargeable to service tax under this category.
The present service when provide din print media is covered under Negative List and no Service Tax is leviable on such provision of space. For detail, please refer to Para 8.9. of the Book. For this purpose, print media has been defined as:
(39a) “print media” means,—
(i) “book” as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867, but does not include business directories, yellow pages and trade catalogs which are primarily meant for commercial purposes;
(ii) “newspaper” as defined in sub-section (1) of section 1 of the Press and Registration of Books Act, 1867;’
Prior to 01.10.2014, Service tax leviable on sale of space or time for advertisements in broadcast media, namely radio or television [section 66D (g) read with section 66B]. However, post 01.10.2014, it was extended to cover such sales on other segments like online and mobile advertising. The new levy would further extend to advertisements in internet websites, out-of-home media, on film screen in theaters, bill boards, conveyances, buildings, cell phones, Automated Teller Machines, tickets, commercial publications, aerial advertising, etc. Sale of space for advertisements in print media, however, would continue to be in the negative list and hence remain excluded from service tax.