No Service Tax Not on Media Incentives to Ad Agency: CESTAT Delhi

Principal Commissioner of CGST & Central Excise-Delhi-IV Vs Nexus Alliance Advertising & Marketing Pvt Ltd (CESTAT Delhi)

The CESTAT Delhi bench has ruled that service tax is not applicable on incentives or volume discounts received by an advertising agency from print media or other media channels. The Tribunal held that such incentives, given for achieving certain business targets while the agency is working for its clients (advertisers), do not constitute a ‘declared service’ under Section 66E(e) of the Finance Act, 1994, as there is no underlying obligation o

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