Sponsorship service

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2014 A Pvt Ltd gives money as sponsor to arrange an event(releasing a book) to B Pvt Ltd.Instead of this A Pvt Ltd's name will come on the book.

Who is liable to take registration certificate and who is liable to pay service tax to government.

CA DEEPAK S K

CA DEEPAK S K (Expert)
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28 May 2014 In accordance with Not 30/2012 if any sponsor ship service is provided to any body corporate then the recipient will be liable for paying service tax, hence in your case it will be B Pvt Ltd who will have to take the ref and pay tax.

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2014 Sir,

As per sponsorship definition it will be B pvt Ltd who will be providing service to A pvt ltd.

Now what will be the scenario.

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CA DEEPAK S K

CA DEEPAK S K (Expert)
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28 May 2014 Apologies for above, In the given case B Pvt Ltd is providing the service and A Pvt Ltd is receiving hence A Pvt Ltd being a Body corporate will be liable to discharge the tax accordingly.

In accordance with rule 4 of service tax rules 1994 those person liable for paying service tax will have to obtain registration, in given case A Pvt Ltd will obtain the registration.

Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2014 Can you tell me under which category registration need to be taken.

Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2014 And what if B Pvt Ltd pays service tax to govt on behalf of A Pvt Ltd. Whether A Pvt Ltd in future can show that the payment was made by B Pvt Ltd.