Query has been raised regarding GST applicable on selling of space for advertisement in print media.
"Summary of the clarification for easy reference"
1- If an agent sells any space for advertising on his own account i.e. by acting as a PRINCIPAL then since such activities will fall under the category of rate i..e.. 5% hence such agent needs to pay GST on an amount of sale of such advertising space to a outside customer against which he can utilized GST paid to the person from whom such space was bought,
Hence 5% will be an output liability against which 5% paid GST would be eligible as ITC in full.
2- Where an agent works for charging commission on such sales, Since commission income will be chargeable to the rate of 18% hence Person needs to pay 18% GST while paying commission to his agent and at the same time Person will charge GST on the amount for which space for advertising is sold to a customer at the rate of 5%,
Hence 18% paid on commission to his agent can be utilized while paying 5% GST liability on a bill made for his customer...
For full text of the clarification please refer http://pib.nic.in/newsite/erelease.aspx?relid=170186
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