Service Tax — Compilation, printing and publishing of Telephone Directories, yellow pages and business directories covered under the definition of ‘advertising agency’ and liability to pay Service Tax - Service Tax - F. No. 345/4/97

Service Tax Compilation, printing and publishing of Telephone Directories, yellow pages and business directories covered under the definition of 'advertising agency' and liability to pay Service Tax F. No. 345/4/97-TRU dated 16-8-1999 as communicated by Calcutta Commissionerate vide Trade Notice No. 99/GL-90/C.E./PRO/CAL-II/99, dated 16-9-1999 of the Calcutta Commissionerate Attention of the Trade and Field Formations are invited to the fact that doubts have been raised as to whether persons engaged in the activity of compilation, printing and publishing of telephone directories, Yellow pages and business directories are covered under the definition of 'advertising agency' and accordingly liable to pay service tax. 2. The matter has been examined by the Ministry of Finance, Department of Revenue (Tax Research Unit). It has been decided that in the case of persons, who are printing and publishing telephone directories, Yellow pages or business directories, their activity is essentially of printing a readymade advertisements from the advertisers and publishing the same in the directory. Their activities are similar to those carried out by newspapers or periodicals. As such, this activity shall not attract service tax. However, if these persons also undertake any activity relating to making or preparation of an advertisement, such as designing, visualising, conceptualising etc., then they will be liable to pay service tax on the charges made thereon.