Increased Service Tax on Online Advertisements [Announcement]

This is to update all the current and prospective clients of AON (also known as aon.works, Awesome Online Networks or “Amrute Online Networks”) and inform about the important changes to digital marketing accounts. This applies to all clients based in India, with online advertisements and marketing campaign running, with products such as- AdWords, Bing Ads, DFA (DoubleClick), YouTube Ads, Facebook Ads.

The sale on online advertisement space has been removed from the exempted list category with effect from 1st October 2014. The applicable service tax on digital ads has increased from 12.36% to 14% due to the metioned changed in Indian tax regulations. This change will take effect for all invoices dated on or after 1st June 2015 raised with respect to sale of online advertisement space on web, mobile, apps or videos.

Reference:

  1. Finance Act 2015. Notification No. 14/2015-dated 19th May 2015 issued by Ministry of Finance, Govt. of India.
  2. Section 114 (B) of Finance Act (No. 2), 2014. Notification No. 18/2014-dated 25th Auguest 2014.