Sponsorship service by trust registered under 12a

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Ritik Agarwal

19 Points Joined December 2018

if any trust providing sponsorship services to some companies what will be tax implications and what type of document need to be issued wheather a tax invoice or a bill of supply

Replies (10)

prasad Nilugal

GST Practitioner & Accounts

15064 Points Joined March 2014

As per Notification 13/2017 dated 28/6/2017 sr.no 4 , sponsorship services provided by any person to body corporate GST on reverse charge ( RCM) will applicable . So Companies will pay GST under RCM .
please confirm with others also .

Ritik Agarwal

19 Points Joined December 2018

What about exemption notification exemption on services by trust registered under section 12 a of income tax act

prasad Nilugal

GST Practitioner & Accounts

15064 Points Joined March 2014

I think that is for charitable activities . so here you are providing sponsorship services .

Ritik Agarwal

19 Points Joined December 2018

Suppose if trust is a health care promotion trust and various medicine companies are receiving sponsorship services from trust as to promotion of medicines and medical treatment than how can we say it is not a charitable activity

prasad Nilugal

GST Practitioner & Accounts

15064 Points Joined March 2014

Here question is sponsorship services is charitable activitie ?, so In the Income tax act , charitable activities are defined in section 2(15) of the Income tax act 1961 .

prasad Nilugal

GST Practitioner & Accounts

15064 Points Joined March 2014

The word " Medical Relief " has been used in section 2(15) of the Income tax act , So please take others opinion also regarding this or confirm with others also .

Ritik Agarwal

19 Points Joined December 2018

Ok i will get in touch with other thank you

Rajendra Prasad

Employee Private

1913 Points Joined July 2017

In my view and understanding,

Notification No.12/2017-Central Tax Rate for exempted services has been exempted the services chargeable under Section 9(1) only.

As per the notification any Services provided by an entity registered under Section 12AA under Income Tax, 1961 by way of "Charitable Activities" are exempted. Also defined "Charitable Activities" in same Notification. If said services covered the definition then exempted, else Taxable.

Whereas Reverse charge Notification No.13/2017- Central Tax Rate, notified the services which has been chargeable in the hands of recipient. Any sponsor ship services received by Body corporate by an entity registered under Section 12AA shall be taxable under reverse charge no exemption on it.