Event management

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Person

Self

21 Points Posted on 16 November 2013

Company A is based in UAE or US

Company A pays a fee to Person A to market and organize educational 5-day events in India.

The delegates of these events pay the fee directly to the company in the UAE or US through a payment gateway.

The fees and expenses are paid into Person A's account.

Person A has to worry about taxes for fees and state expenses BUT does Person A have to worry about any govt taxes other than income tax (service tax, VAT etc.) - should that not be the responibility of Company A

Person A could also be a sole proprietership

Thank you

Replies (2)

CA Kanagaraj R

CA CS & CWA

89 Points Posted on 16 November 2013

As I could understand from your post, the services rendered by 'Person A' is - 'Organization of educational event in India' on behalf of a foreign company, for which he is goin to receive the consideration directly from the company and not from the participants.

Service tax wil be applicable for 'Person A' since as per POPS rule 6, services by way of organization of an event shall be the place where the event is actually held. Therefore, the same cannot be claimed as 'Export of services' and hence liable for service tax @ 12.36%.

Regards,

CA. Kanagaraj R

Manoj Agarwal

Service Tax Consultant Rourkela Service

2755 Points Posted on 16 November 2013

Agree with views of CA Kanagaraj assuming that the event is not held in the state of J&K. Service tax shall be discharged by Person A due to application of Reverse Charge vide N/N - 30/2012