Google Notifies Adwords Customers Regarding Service Tax of 12.36 %

0
1105
Print Friendly, PDF & Email

Till now there was no service tax on advertisements services bought from Google under Adwords brand. But as the Finance Act 2014 has got the assent of President, the service given by Google of online advertising is no more in the Negative List. So , be ready to bear the additional cost of 12.36 %.This change is due to section 114 (B) of the Finance Act (No.2) Act, 2014, which received Presidential assent on 06th August 2014 read with Notification No. 18/ 2014 – Service Tax dated 25th August 2014 issued by Ministry of Finance, Government of India. Sale on online advertisement space is no longer in the negative list category effective 01 Oct 2014.

Read the Google Notification to its customers

Your tax rate is changing for invoices dated on or after October 1, 2014. The rate will be changed from the current rate of 0% (zero percent) to 12.36% (inclusive of Education Cess and Secondary & Higher Education Cess).

This change is due to section 114 (B) of the Finance Act (No.2) Act, 2014, which received Presidential assent on 06th August 2014 read with Notification No. 18/ 2014 – Service Tax dated 25th August 2014 issued by Ministry of Finance, Government of India. Sale on online advertisement space is no longer in the negative list category effective 01 Oct 2014.

Please note that Google cannot advise you on tax matters. We recommend that you contact your tax adviser for any questions regarding this change.This service announcement is sent to all advertisers (active as well as inactive) in India and doesn’t affect your account status or activity.

Sincerely,
The Google AdWords team