Google Adsense Publishers Need not to pay any "Service Tax" in india after July 1st 2012

Good News - For all Google Adsense Publishers! From July 2012 we dont have to pay any service tax either on google adwords or the google adsense. 

Why we should mnot pay the service tax on google adsense earning?
Due to a recent change in Indian tax regulations, the service tax rate for advertising services supplied by Google India Private Limited will change. The rate will be reduced from the current rate of 12.36% to 0% (zero percent). Given that Education Cess and Secondary & Higher Education Cess are calculated as a percentage of the service tax, we will also no longer charge these taxes. This change will take effect for all AdWords invoices dated on or after July 1, 2012.

Clause by clause details : 
Finance Minister Pranab Mukherjee declared all services to come under Service Tax Act other than a service which falls in negetive list. This negative list initially had 17 services and currectly have been extended to 38. Below clause tells u that all advertisement services other than the radio and television are in negetive list.  Clause 66D of Finance Act 2012 : Subsection (g) 
selling of space or time slots for advertisements other than advertisements broadcast by radio or television;
I hope the above sentence clears all the doubts from your mind and now u can feel free.

This article is just for the information only, we do not advice you make this base for you tax habits, and please consult your tax advisor for better understanding.  

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