Service tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 October 2011
Sponsorship received as 50% in cash and 50% in kind, Does it attract Service tax and how does it will be calculated
15 October 2011
Pl. elucidiate your point-which sort of sponsorship.
Usually sponsorship is not the service but a sort of business promotion activity payment in return of something from the proposer.
Usually sponsorship is not the service but a sort of business promotion activity payment in return of something from the proposer.
15 October 2011
In my opinion, Service tax is applicable on 'sponsorship service' under reverse charge basis i.e. the person making payment for sponsorship will be leviable to pay service tax to government as similar in case of GTA service. For levy both payment in cash as well as in kind will be taken into account as per Section 67 of Finance Act, 1994
15 October 2011
Sorry..The service tax liability is in the hands of the person who receives the service/money and not who pays.
15 October 2011
If you have received the sponsor 50% in cash and 50% in kind then you need consider both cash & kind to calculate the service tax liability.
15 October 2011
Sponsor getting in turn exclusive booking rights, etc. in the case of an event is covered for service tax, further body corporate or firms are covered but not individuals, sports sponsorship is also not covered.
It is to be seen case by case the matter/crux of such sponsorship, nature, event and treatment to clearly determine whether service tax is applicable or not HENCE unless full facts of the case are stated it would be difficult to opinion exactly whether service tax is applicable or not, merely theoratically looking at the scenario may be avoided.
It is to be seen case by case the matter/crux of such sponsorship, nature, event and treatment to clearly determine whether service tax is applicable or not HENCE unless full facts of the case are stated it would be difficult to opinion exactly whether service tax is applicable or not, merely theoratically looking at the scenario may be avoided.
16 October 2011
Fully agreed with Ashok Sir. It is true that service tax liability lies on person who is receiving payment. But Sponsorship service is an exception where service receiver is liable to pay service tax under Rule 2 (1)(d)(vii)of Service Tax Rules, 1994. Further, now sports sponsorship has also been covered under tax net.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
