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Service tax in case of events organised outside india

1059 views 2 replies

cherisha patel

88 Points Posted on 07 July 2014

Dear professionals,

I had a query regarding the application of service Tax,

One of the client is a evnt based company, they collect money (event fees and membership fees) on behalf of a body outside India; from people in India/ outside India and trf the same to the event conducting body outside India and the event is also conducted outside india.

So what will be the service tax implication in this case.

and what if they collect sponsorship fees?

Replies (2)

Saurabh Maheshwari

B.com ACA

5923 Points Posted on 07 July 2014

Rule .6 of Place of Provision of service rules,2012 Place of provision of services relating to events.- The place of provision of services provided by way of admission to, or organization of, a cultural, artistic, sporting, scientific, educational, or entertainment event, or a celebration, conference, fair, exhibition, or similar events, and of services ancillary to such admission, shall be the place where the event is actually held..Therfore, Place of prov is outside India...thus service not taxable as per Sec 66B of FA,1994.

Infact it is export of service provided the conditions specified in Rule 6A of ST Rules,1994 are satiisfied..

In case of sponsership services , ST liability as per Notification No. 30/2012 is on the receiver of service ....