Who has to pay tax when a trust receives a sponsorship from individual?
Sponsorship services provided by ANY PERSON to:
i) any body corporate or
ii) partnership firm
RCM will be applicable.
Since trust is not a body corporate RCM will not be applicable and therefore Trust will have to raise invoice for sponsorship amount along with GST.
If charitable trust is not required to be registered as turnover has not exceeded the limit will RCM be applicable and does the individual has to pay.
CAclubindia
