New Delhi: Newspapers have so far paid next to nothing in taxes, thanks to Supreme Court's patronage.
But now, a proposed 10.2 per cent service tax on the value of advertising space bought in newspapers has the industry yelling from the rooftops.
The Indian Newspaper Society (INS) says it will stunt the growth of the newspaper industry ? an industry that bills 4000 crores to ad agencies every year.
The INS wants ad space in newspapers to be treated like a commodity sold in square centimetres.
It claims papers aren't providing a service by selling ad space.
Chairman, Fiscal Laws Panel, ICAI Ved Jain says that newspaper space is actually owned by publisher and there's when it is rented out, there's no element of service involved.
It is on cost to cost basis and should be taxed.
Freedom of speech is a fundamental right and that's what has got the newspapers an exemption from Central Excise and Sales Tax so far.
Newspapers claim that the proposed Service Tax impinges that right.
Having submitted its list of recommendations, the newspaper industry is now trying to woo the Finance Minister.
And the buzz in the ministry suggests that the government may take another look at this proposed tax.
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