Sponsorship recd. will service tax apply ?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 November 2010
X event management firm is organising a live concert for which it has received a sponsorship of Rs.10 lakhs from a real estate developer & other corporate houses.
What is the effect of service tax on this ?
Can the firm ask the corporates to pay service tax,if applicable ?
What is the effect of service tax on this ?
Can the firm ask the corporates to pay service tax,if applicable ?
CA.Madhusudan B.P.
(Expert)
08 November 2010
It is not can, It should be, otherwise you will have to incur the service tax amount from your pocket.
Grossing up concept or reverse working shall be done. If you bill Rs10lakhs only without Service tax component & payment received in full Rs.10 lakhs (Including TDS amount) then the amount of Service tax liability would be calculated as follows
ST = (10 lakhs * Service tax rate)/100 + Service tax rate.
Grossing up concept or reverse working shall be done. If you bill Rs10lakhs only without Service tax component & payment received in full Rs.10 lakhs (Including TDS amount) then the amount of Service tax liability would be calculated as follows
ST = (10 lakhs * Service tax rate)/100 + Service tax rate.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Employee secondment
- IMS (import of goods) ITC related
- Advances to related party
- LLP audit and disclosure
- Form 144 TDS Return Validation error
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Form 144 TDS Return Validation Error – Mandatory Fields
- GSTR9 Annual Return
- Applicability of tax on invoice
- Ito add credit side of bank
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
