Levy of service tax on sponsorship activity

This query is : Resolved

RANGA SRINIVAS (Querist)
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04 May 2009 Dear Professional colleagues

Assessee is an event management company. The company hosts events for which it collects registration fees from the individual participants and also collects sponsorship fees from various participants basically corporate and non corporate entities. As a result, these entities can advertise there products and services.

My query is

Is registration fees subject to service tax
If so which chapter
Is sponsorship fees subject to service tax if so which chapter

Thanks and regards

Ranga k S

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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06 May 2009 In your case it seems the organiser of the event and the service provider are one and same. Therefore, no service tax is applicable. In case of sponsorship the person receiving the sponsorship i.e, you would be liable for tax payment under " Sponsorship Service".