Service tax on sponsorship

Swathi hebbar (CA Final) (257 Points)

03 December 2013  

Hello 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