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Applicability of service tax

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Querist : Anonymous

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Querist : Anonymous (Querist)
01 November 2010 I have an event management firm as my client. They are going to do a show wherein they will be bringing in some sponsorship from corporate houses. This amount would be taken in their firms name. I would like to know whether service tax would be applied on this amount (sponsorship amount). If yes why and can they ask such amount from the corporate house itself..?? please help...
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CA Shailesh Kumar Bhagat

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CA Shailesh Kumar Bhagat (Expert)
04 November 2010 Service tax is applicable on sponsorship services. Service provider has to paid the service tax. It is the integral part of the afreement, whether they will collect the service tax extra,or will make the payment directly.
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