Destiny Advertising Agency, Ahemdabad supplying services to different customers for making booking of advertisements in different media, provides the following details and of the amounts charged there against for the mon

CS Professional · Advanced Tax Laws · PYQS · December 2020
Destiny Advertising Agency, Ahemdabad supplying services to different customers for making booking of advertisements in different media, provides the following details and of the amounts charged there against for the month of January, 2020: Particulars Amount (₹ Lakh) (1) Aerial advertising 15 (2) Sale of time slot for advertisement to be broadcast on television 12 (3) Advertisement via banner at public places 7 (4) Sale of time slot for advertisement on FM Radio/98 Radio Mirchi 13 (5) Advertisements in Dainik Bhaskar newspaper 9 (6) Advertisement on cover and back pages of books 1 Compute the taxable value of the services and of the amount of GST payable. Take the rate of GST in print media of 5% and in other cases of 18%. All amounts given are exclusive of GST. Ignore the threshold limit.

Answer & Explanation:

Destiny Advertising Agency, Ahemdabad Computation of Taxable Value of Supply and of GST payable of January, 2020 S. No. Particulars Amount (₹) 1. Aerial advertising 15,00,000 2. Sale of time slot for advertisement in TV Serial 12,00,000 3. Advertisement via banners at public places 7,00,000 4. Sale of time slot for advertisement on FM radio and 98 Radio Mirchi 13,00,000 5. Advertisement in Dainik Bhaskar news paper (Print media hence GST applicable @5%) 9,00,000 6. Advertisement on cover and back pages of books (Books are covered in Print media - hence GST applicable @ 5%) 1,00,000 Total Value of Taxable Supply 57,00,000 Value of supply Taxable @ 5% (9,00,000+1,00,000) 10,00,000 Value of supply Taxable @18% (15,00,000+12,00,000+7,00,000+13,00,000) 47,00,000 GST Payable (10,00,000 x 5%) + (47,00,000 x 18%) = 50,000 + 8,46,000 8,96,000

Topics: GST

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