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Applicabilty of service tax on giving Rs.1Lakh as a sponsor

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This query is : Resolved

Dr. Devendra Kachru (Querist)
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23 February 2009 Being a proprietorship firm , we are to pay Rs.1 lakh as a contribution to a medical seminar/ held last year .
Is there any need to deduct any form of tax ( service tax /income tax etc, ) prior to paying to the organisers. The conference has no regstartion under any tax authority. I am told that some companies have deducted a part of the committed funds and depositedwith Govt .
Please eductae me.

Rajesh Kumar

Rajesh Kumar (Expert)
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03 March 2009 Service Tax is never required to be deduted. It is for the service provider to assess their taxes and charge the service receiver in bills if they are paying service tax. If they are not charging, it is their probelm. (freight and ST payment under 66A is exception where payment liability on receiver.)
Further no TDS is deductible on this amount.

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