What is the service tax treatment of Sponsership and Donation, I am a service providing company and sponsored a "Run". What is the service tax treatment in my hand.
Pls reply fast
Thanks in advance.
3 Replies
Harendra Kumar
(Tax Advisor )
(1326 Points)
Replied 03 July 2014
It is taxable service and also will be calculat under head RCM. So that both are liable to pay service tax i.e. provider or receipaint but also given the benifit of SSI i.e. 10 lakh.
Plz raised your other question if you having in thsi regard.
PREM kasi
(Internal audit)
(69 Points)
Replied 04 July 2014
in my view, in case of sponsorship services the recepient is liable to pay tax on the amount...and under RCM the payer of service tax will not get any basic exemption of 10 lakhs .
Arun Kumar Singh
(GST Advocate)
(15220 Points)
Replied 04 July 2014
By way of sponsorship services provided or agreed to be provided to anybody corporate or partnership firm located in the taxable territory, in this case service recipient are liable to pay service tax on 100%, otherwise service providers are liable to pay service tax. No need to pay service tax on donation.
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