Sale of space in print media out of service tax net - Dr Sanjiv Agarwal - Article published in Business Advisor, dated September 25, 2014 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/

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Sale of space in print media out of service
tax net
Dr Sanjiv Agarwal
At present, selling of space or time slots for
advertisements other than advertisement broadcast by
radio or television is in the negative list, but by the
Finance Act, 2014, the same has been amended so as
to curtail the scope of the negative list and increases
the scope of taxable services so that w.e.f. Finance Act,
2014 (i.e., 01.10.2014), only selling of space for
advertisements in print media would be in the negative
list.
Thus, selling of space or time slots for advertisement on internet websites,
out-of-home media, on time screen in theaters , bill boards, conveyances,
buildings, cell phones, automated teller machines, tickets commercial
publication, aerial advertising etc. would be liable to service tax.
Amendments made by the Finance Act, 2014 (w.e.f. 01.10.2014)
The amended entry in clause (g) of section 66D of the Finance Act, 1994,
reads as under:
‘Selling of space for advertisements in print media’.
Service tax is leviable on sale of space or time slots for advertisements in

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broadcast media, namely radio or television [section 66D (g) read with
section 66B], which has now been extended to cover such sales on other
segments like online and mobile advertising.
Sale of space for advertisements in print media, however, would continue to
be in the negative list and hence remain excluded from service tax.
The amendment is effective on enactment of the Finance Act, 2014, from a
notified date which is now notified as 01.10.2014, vide Notification
No.18/2014-ST dated 25.08.2014.
Only selling of space for advertisements in print media would be in the
negative list.
Print media (Clause 39A) (inserted by the Finance Act, 2014, w.e.f.
01.10.2014)
Print media has been defined in service tax law for this purpose to include
book and newspaper. Print media has been defined under section 65B (39A)
of the Finance Act, 1994.
‗Print media‘ means,—
(i) ―book‖ as defined in sub-section (1) of section 1 of the Press and
Registration of Books Act, 1867;
(ii) ‗newspaper‘ as defined in sub-section (1) of section 1 of the Press and
Registration of Books Act, 1867.
According to Wikipedia, the word ‗print‘ originates from the Middle English
word ‗printe.‘ Print means ‗to impress or stamp‘. Its definition relates to the

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process of producing text using ink, lettering and paper, or other printable
materials.
The origin of ‗media‘ goes back to the Latin word ‗medius‘ or ‗medium,‘ the
singular form of the word, meaning an intermediate agency or channel of
communication. Media is defined as any means of communicating that
reaches a large number of people.
Print media refers to paper publications circulated in the form of physical
editions of books, magazines, journals and newsletters.
As per section 1(1) of the Press and Registration of Books Act, 1867 ―Books‖
includes every volume, part or division of a volume, and pamphlet, in any
language, and every sheet of music, map, chart or plan separately printed,
but does not include business directories, yellow pages and trade catalogues
which are primarily meant for commercial purposes;
According to Wikipedia, a book is a set of written, printed, illustrated, or
blank sheets, made of ink, paper, parchment, or other materials, usually
fastened together to hinge at one side.
A single sheet within a book is called a leaf, and each side of a leaf is called
a page.
As per section 1(1) of Press and Registration of Books Act, 1867,
‗Newspaper‘ means any printed periodical work containing public news or
comments on public news.
A newspaper is a periodical publication containing news, other informative
articles (listed below), and usually advertising. A newspaper is usually
printed on relatively inexpensive, low-grade paper such as newsprint.
‗Newspaper‘ is defined as:
 a printed paper or publication;
 bearing a title or name;
As per section 1(1) of Press and Registration of Books Act,
1867, ‗Newspaper‘ means any printed periodical work
containing public news or comments on public news.

4. Volume VIII Part 6 September 25, 2014 6 Business Advisor
 reporting local or general news;
 printing editorial comment, announcements, miscellaneous reading
matter, commercial advertising, classified advertising, legal advertising,
and other notices;
 published continuously during a period of at least six (6) months, or as
the successor of such a printed paper or publication issued during an
immediate prior period of at least six (6) months;
 is circulated and distributed from an established place of business to
subscribers or readers;
 is sold for a definite price;
 either entered or entitled to be entered under the Postal Rules and
Regulations as periodical matter (formerly second class mail); and
 subscribed for by readers at a fixed price for each copy, or at a price fixed
per year. (Source : panewsmedia.org )
Examples of space selling now taxable
According to the amendment, advertisement, in
(i) Internet websites, out of home media, on film screens and theatres
(ii) Bill boards
(iii) Conveyances
(iv) Buildings
(v) Cell phones
(vi) ATMs
(vii) Tickets
(viii) Commercial publications
(ix) Aerial advertising
(x) Yellow pages etc.
would be chargeable to service tax.
(Dr Sanjiv Agarwal is Partner, Agarwal Sanjiv & Company, Jaipur)