Reverse charge on sponsorship

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If a company is sponsoring in an event, the invoice is raised for stall charges & sponsorship charges cumulatively of 120000/- & service tax is charged on cumulative value. Is reverse charge applicable in this case & on what amount?

Replies (3)

It is a complete reverse charge in case of sponsorships. Any service provider providing services to Body corporate / partnership firm will attract reverse charge in case of sponsorship.

Is reverse charge applicable on stall charges also included in above 120000? But its amount is not bifurcated. OR reverse charge is applicable on whole 120000?

Section 67 is proposed to amended in finance Bill, 2015 which says......

" (ii) any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed;..............."

for calculaton take it Inclusive of tax if you have not shown service tax sepratly. 


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