With the growing markets and competition, advertising has become an essential tool to reach the target market as well as the target audience. Advertising spending has increased dramatically in recent years. The worldwide advertisement spending has exceeded half-a-trillion dollars by 2010. Advertising agencies offer a full range of advertising services and advice based on market studies, popular culture and advanced sales techniques. The services rendered by these advertising agencies to their clients are liable for taxation under the service tax regime as on 01-11-1996. The study focus on the effective compliance of service tax provisions by advertising agency by entailing certain basic knowledge about tax liability, scope of levy, taxable event, value of taxable service, maintenance of records, submission of returns, e-filing of service tax return, penalty and appeals.
Service tax, taxable income, e-filing, penalty, appeal
