Service tax reverse charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2015 Dear Sir

We have a pvt. ltd. event management co. we have receive rs. 5 lakh from a corporate corporatin co. for sponsorship they deposit 70000/- as reverse chage detail given by that co hereunder :

Total Amount of Bill for sponsorship 500000/-

TDS Dedudcted - 10000/- and cheque Rs. 4,90000/- and reverse charge service tax. Rs. 70000/- plese suggest that what is our co. resposibility for service tax on above sponsorship ?

Thanks & Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 July 2015 As 100% service tax as per requirement under RCM has been paid corporate co there is no liability for service tax to you on the above.

CA Neelam Maheshwari

CA Neelam Maheshwari (Expert)
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04 July 2015 sponsorship service provided to body corporate or partnership firm by any person, the recipient will be liable to pay service tax.

As sponsorship service is received by a body corporate in your case, your company will be liable to pay ST.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 July 2015 CA Neelam Maheswari are you sure your reply is correct.

CA Neelam Maheshwari

CA Neelam Maheshwari (Expert)
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04 July 2015 Sorry, My mistake !! i thought you are receiver of service.
As you are provider of service, no liability on your part.
Agree with expert.

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CA Neelam Maheshwari

CA Neelam Maheshwari (Expert)
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04 July 2015 No Sir, my reply is not correct and I apologize for misreading the question.

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