No service tax on ads in dailies

NEW DELHI: The government on Friday said sale of space for advertisement in newspapers is not subject to service tax.

Although a service provided in relation to sale of space or time for advertisement is specified as a taxable service under Section 65(105)(zzzm) of the Finance Act, 1994, the sale of space for advertisement in print media was specifically excluded from its scope, minister of state for finance SS Palanimanickam said in a written reply to a question in Lok Sabha.

Elaborating further, he said print media included newspapers as defined in the Press & Registration of Books Act, 1867, and in view of the foregoing provisions, sale of space for advertisement in newspapers is not leviable to service tax.

To a question on tax deducted at source (TDS), Mr Palanimanickam said the income-tax department is taking steps to educate the employers about the provisions of TDS. It is also charging interest and penalty to ensure proper compliance of the provisions of law, he added. The minister said instances of failure to deduct tax at source or to deposit the tax deducted to the government account were detected and investigated at the level of the field units.