Sponsorship amount is liability to collect service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2015 My Query is Amount received as a Sponsorship Amount is liability for service tax under the service tax act. My Firm is AHPI is Called (Association of health Providers India) This is purely NGO's. This is registered under TRUST/SOCIETY In Head Office in Delhi. and same is Branches in Bangalore and some other states. Any Amount Received from other parties for Sponsorship any event is liability to pay service tax please clarify this sir.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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14 April 2015 Sponsorship is an alternate form of advertisement. Service tax is leviable only when the sponsor is any body corporate or firm.

Sponsorship of sports events
is excluded from the scope of this levy.

Service tax is to be collected under reverse charge method from
the recipient of service namely the body corporate or firm who sponsors the event.

It may be noted that the organizers of events are not liable to pay service tax under sponsorship service.