30 December 2008
Hi, say a college collects sponsorship over Rs.8 lakhs from corporate clients for its annual festival and signs MoU with them for this purpose. MoU states that corporates will be allowed to place their billboards, signboards etc for their advertising.
Whether these payment will be covered under advertising services and college should collect service tax on this? If so, college is not having service tax regn. no., how would it deposit?
How much income tax liability will be there and how much TDS, the sponsors should deduct?
Please note that not a single client is paying more than Rs.5 lakhs.
Also please advise the way in which tax liability and complicacies will be least?
CAclubindia
