Sponsorship services
This query is : Resolved
sumit arora
(Querist)
23 October 2012
AS PER NEW SERVICE TAX RULES W.E.F 01.07.2012
I AM A PARTNER IN PRODUCTION HOUSE (MOVIES), WE'R GETTING SPONSORSHIP FROM ONE BUSINESSMAN FOR THE PRODUCTION OF MOVIE. MY QUERY IS
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 & HOW MUCH.
I AM A PARTNER IN PRODUCTION HOUSE (MOVIES), WE'R GETTING SPONSORSHIP FROM ONE BUSINESSMAN FOR THE PRODUCTION OF MOVIE. MY QUERY IS
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 & HOW MUCH.
Arun Kumar Singh
(Expert)
23 October 2012
Service recipient will pay the service tax on sponsorship services on the reverse charge method. I think you are a service provider, Recipient will pay you the value of sponsorship fee and they will pay the service tax.
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sumit arora
(Querist)
23 October 2012
First thing i need is how much amount can be taken without applicability of service tax or it is not possible without service tax.
secondly, whether i have to issue any invoice for the same.
thirdly, whole amount will be paid by the recipient?
secondly, whether i have to issue any invoice for the same.
thirdly, whole amount will be paid by the recipient?
MOHAMMAD SALIM
(Expert)
24 October 2012
Under reverse charge no benefit for threshold is applicable as per proviso (ii) of notification No 33/2012-ST dated 20-06-2012. Accordingly even if Rs 100 is taken the same would be taxable in reverse charge mechanism.
Yes invoice for sponsorship charges is to be issued without applying service tax as 100% service tax in case of sponsorship is paid by service recipient.
Yes invoice for sponsorship charges is to be issued without applying service tax as 100% service tax in case of sponsorship is paid by service recipient.
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sumit arora
(Querist)
25 October 2012
Thanks a lot CA Mohammad Salim sir.
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