Rajesh Ltd., providing services in the field of advertisement provides the following information for the quarter ending 31-12-2016: (i) Sale of space for advertisement in a national News-paper ₹50 lakh. (ii) Sale of spac

CS Professional · Advanced Tax Laws and Practice · PYQS · June 2017
Rajesh Ltd., providing services in the field of advertisement provides the following information for the quarter ending 31-12-2016: (i) Sale of space for advertisement in a national News-paper ₹50 lakh. (ii) Sale of space for advertisement through hoardings during a cricket match ₹42,00,000. (iii) Sale of advertisement in a national channel of T.V. ₹18,00,000. Service Tax was charged extra in the bills raised wherever applicable. Invoices are issued within 30 days of the completion of the service while payment has been received in Jan. 2017. Find out the amount of taxable services and of the tax liablity for the quarter ending 31-12-2016.

Answer & Explanation:

Computation of value of taxable services and service tax payable for the quarter ended 31.12.2016 Sr. No. Particulars Amount (INR) Value Amount (INR) Taxable Value i Sale of space for advertising in a national news-paper (Exempt) ii Sale of space for advertising through hoardings during a cricket match 42,00,000 iii Sale of advertisement in a national channel of T.V. 18,00,000 18,00,000 Value of Taxable Services 60,00,000 Service tax payable @ 15% (including swach bharat cess @ .05% & krishi kalian cess @ .05%) 9,00,000

Topics: Service Tax Law

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