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TMI BlogService Tax on Advertising services provided by a commercial concernX X X X Extracts X X X X X X X X Extracts X X X X ..... Service Tax on Advertising services provided by a commercial concern - Commentaries / Editorials Dated:- 22-8-2007 - News - Service Tax on Advertising services provided by a commercial concern " In a recent decision, honorable tribunal in the matter of Board of Control for Cricket in India Vs. Commissioner of Service Tax, Mumbai reported in 2007 -TMI - 1530 - CESTAT, MUMBAI , has held that, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "BCCI was not engaged in advertising activity which is subject to service tax". The relevant abstracts are as follows: BCCI is a registered society with the main object of promotion of the game of cricket throughout India. For the said purpose, they undertake various activities like organizing test matches, one days, international and other tournaments and enters into agreement with similar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... organizations of other countries for holding the matches etc. During such activities, the appellant received amount from sponsorer of the tournaments/matches, by permitting putting of logo of the organization on clothing and clothing accessories of the players and for sale of telecast rights to any channel. It is in respect of the said amount received by the appellant on account of above rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons, the authorities below has held them to be covered under the category of advertising agency, thus liable to pay taxes on the services so provided by them. The disputed activities were:— (i) Sale of telecast right of cricket matches, (ii) Permitting sponsors to use space for putting up of advertisement in stadium, and (iii) Permitting logos on clothing and clothing accessories of pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayers. Honorable tribunal has held that, " As such, it is clear that what is being taxed is planning and expertise involved in making, preparing display or exhibiting the advertisement and not simply providing of a place or space to the advertiser. The expression 'display' or "exhibit' does not mean the physical act of display and exhibit, but relates to the services rendered, as an expert b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ody, to the client, for the purposes of display or exhibit. The same may involve the expertise of the provider of the services to advise the client as to in which manner, the advertisement should be displayed i.e. whether in the newspaper or on TV channel or by way of hoarding or a audio/video advertisement in air or any other medium or at what point of time the same should be exhibited. We find t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat no such expert services are being provided by the appellant in the present case. They are merely canvassing their clients to make utilize of the space available with them for the purposes of advertisement of their product during the course of matches, which are going to be telecasted and by which they can popularize their products. As such, the activities amount to sale of space and not as reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards advertisement." Executive note: Since the scope of Advertising Services have been enlarged with effect from 1-5-2006 and various new services were introduced with effect from 1-5-2006, the decision of honorable tribunal is highly relevant for the issues pertaining to the period before 1-5-2006 - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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