23 October 2012
Service recipient will pay the service tax on sponsorship services on the reverse charge method. I think you are a service provider, Recipient will pay you the value of sponsorship fee and they will pay the service tax.
24 October 2012
Under reverse charge no benefit for threshold is applicable as per proviso (ii) of notification No 33/2012-ST dated 20-06-2012. Accordingly even if Rs 100 is taken the same would be taxable in reverse charge mechanism.
Yes invoice for sponsorship charges is to be issued without applying service tax as 100% service tax in case of sponsorship is paid by service recipient.
CAclubindia
