Reverse charges in service tax
This query is : Resolved
Bhawna Rajpal
(Querist)
24 October 2012
As Per service tax rules w.e.f. 01.07.12
suppose i am partner in producion house (movies). We are getting sponsership services from one business man for the production of movie. my queries are:-
1.how much amount we can take from him without applicability of service tax ?
2. if service tax is applicable then what will be its whole impact ?
3. who is to pay and how much ?
4. what's the accounting entries in this case ?
5. also explain reverse charges in service tax ?
6. what will be the agreement made between partners and sponsers and also let me know while preparing partnership deed is it necessary to show that we will take sponsership services ?
suppose i am partner in producion house (movies). We are getting sponsership services from one business man for the production of movie. my queries are:-
1.how much amount we can take from him without applicability of service tax ?
2. if service tax is applicable then what will be its whole impact ?
3. who is to pay and how much ?
4. what's the accounting entries in this case ?
5. also explain reverse charges in service tax ?
6. what will be the agreement made between partners and sponsers and also let me know while preparing partnership deed is it necessary to show that we will take sponsership services ?
CA Ayush Agarwal
(Expert)
24 October 2012
In This Case, Service receipients Need to pay Service Tax Not By Provider.
Whether It is Corporate or Non Corporate.
So In This Case, There is No Limit Since Reverse Charge is Applicable, Even a Single Rupee Will be Chargeable for Service Tax.
Whether It is Corporate or Non Corporate.
So In This Case, There is No Limit Since Reverse Charge is Applicable, Even a Single Rupee Will be Chargeable for Service Tax.
Bhawna Rajpal
(Querist)
24 October 2012
dear thanks 4 ur reply but clear one thing sponsers are giving sponsership to my firm in form of cash then who will have to raise bill either by my firm or sponsers and let me know about accounting entries.
CA Ayush Agarwal
(Expert)
25 October 2012
Bill will be raised by Service Provider Only.
Message likes :
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Bhawna Rajpal
(Querist)
25 October 2012
can u plz let me know about the site where i can read all matter realted to sponsership received inorder to understand full matter.
CA Ayush Agarwal
(Expert)
25 October 2012
https://www.caclubindia.com/articles/sponsorship-services-9800.asp#.UIjcA2_MidM
https://www.servicetax.gov.in/st-profiles/sponsorship.pdf
https://www.servicetax.gov.in/st-profiles/sponsorship.pdf
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