reverse charge on sponsorship fees.

This query is : Resolved 
 

(Querist) 09 February 2010

As per Rule 2 of Service Tax Rules:
in case of sponsorship fees, service tax is to be paid by the person who is liable to pay the sponsorship fees.
If we have paid the sponsorship fees, then we are liable for the paymnt of service tax on behalf of the service provider.
My question is that
1. if we are liable to pay the service tax , then whether we have to pay service tax separately with separate challan?

2. what document are required to be givent o the service provider to make him assure that we have deposited the service tax on his behalf?


CA. Chitresh Gupta (Expert) 09 February 2010

Yes, it has to be deposited by seperate challan by mentioning the accounting codes for sponsership service.
You need to get your Registration certificate amended in order to include this servcie in your RC as service recepient.

As regards to your second query, you are not required to submit any documents to service provider, since it is your duty to pay the tax by why of reverse charge machanism.

Regards

CA. Chitresh Gupta (Expert) 09 February 2010

Yes, it has to be deposited by seperate challan by mentioning the accounting codes for sponsership service.
You need to get your Registration certificate amended in order to include this servcie in your RC as service recepient.

As regards to your second query, you are not required to submit any documents to service provider, since it is your duty to pay the tax by why of reverse charge machanism.

Regards



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