Swathi hebbar (CA Final) (257 Points)
03 December 2013Hello Friends,
One of our client is receiving sponsorship for 75000/- towards calendar shoot from Hathway.In turn my client is displaying the sponsor logo in the calendar( my client is engaged in Media service)
As per service tax act, service recipient has to remit service tax @ 12.36% to govt. What will be accounting treatment in my client books?
Regards
Swathi
Neljo Davis ACA
(Consultant)
(630 Points)
Replied 17 December 2013
The client is required to book only the sponsorship income, if the service recipient is any bodycorporate or partnership firm located in the taxable territory. No need to pass any entry related to service tax.
CAclubindia
