Pure agent

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..... Pure agent
Query (Issue) Started By: - Sohail Ahmed Dated:- 31-5-2018 Last Reply Date:- 7-6-2018 Service Tax
Got 5 Replies
Service Tax
Sir, Say A is registered as advertising agency. He procure orders for advertisment and get it done in print and electronic media. He get 15% discount on such orders. He issue invoices of same value and pays service tax only on 15% discount. My questio .....

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..... n is 1. In which category of services does he fall. 2. Can he avail cenvat credit of service tax he pays on bills he receives. Reply By YAGAY and SUN: The Reply: In our view this discount is nothing else but commission which you are receiving for providing of taxable services. Input services which are necessary to provide such out put services are eligible for availing CENVAT credit. In our vi .....

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..... ew this may be classified under Business Support Service of the erstwhile Service Tax Laws under Finance Act, 1994. Reply By KASTURI SETHI: The Reply: Agreed with M/s Yagay and Sun, Sirs but it is classified under BAS category. There is clause to cover such commission in the definition of B.A.S. Rate is same but proper classification is required. Reply By Sohail Ahmed: The Reply: Thanks for re .....

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..... ply. It means advertising agency is wrong classification and cenvat credit is not available. Bcos service tax paid by him is not input. Reply By YAGAY and SUN: The Reply: There was no one to one correlation in service tax regime. Hence may be available. Reply By KASTURI SETHI: The Reply: I support the views dated 7.6.18 of M/s.YAGAY And SUN, Sirs.
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