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servicetax on event management

bharani (ca) (46 Points)

13 March 2008

i have client having event management company

they have a practise of billing mentioning the details of all the services they provide

and their service charges separately

they are collecting the service tax only on the services they are proving

whether this practise is correct or they have to collect on gross amount

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1 Replies

M.Sriram Shenoy (CA Final) (814 Points)
Replied 14 March 2008

Service Tax should be charged on the "Value of Taxable service provided".In the case of event management concerns, EXCLUSIONS are ; Services rendered by non-commercial concern, convention centre being taxed separately, events managed in house, sale of tickets and revenue from sale of space, event managed by sponsors themselves, other services being used and billed separately by service providers.