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Service tax on sponorship

aishwarya s raghavan (student) (224 Points)

30 November 2013

Dear All!

I have a query rearding service tax on sponsorship service. Asper Notification No.30/2012, in case of sponsorship service provided by any person to Body orporate/firm, 100% service tax on reverse charge shall be paid by the service receiver. What will be the position if the service receiver is nether a coporate nor a firm?

Who is liable for service tax in such instance?

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8 Replies

shuhaib.c (CA-Final) (73 Points)
Replied 30 November 2013

service provider's liability...he should charge ST in invoice and make ST payment..

2 Like

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 30 November 2013

In my view, any Individual not exceed the Exemption limit of Rs. 10 lacs. Then his libilities not created for paid service tax under Reverse Charges vide N/F 30/2012.

If the Individual crossed such exemption limit then his libilities created for making those liabilities.

1 Like

CA SHRAVANA DOTA (ACA) (125 Points)
Replied 30 November 2013

If service receiver is neither a corporate nor a firm, liability to pay service tax is on service provider as per sec 68(1) of Finance Act 1994.

1 Like

aishwarya s raghavan (student) (224 Points)
Replied 30 November 2013

Can you please cite wth the relevant section?

Also if the service provider has not registered for this service, then should be regigister for the same and then collect service tax?

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 30 November 2013

In case of sponsorship, if the service receiver is neither a body corporate nor a partnership firm, then N/N-30/2012 (reverse charge) is not applicable and the service provider is the person liable to pay service tax [section 68(1)]

If the aggregate value of taxable service in the preceding FY did not exceed Rs. 10 Lacs for the service provider, service tax is exempted in the CY upto aggregate value of Rs. 10 Lacs, otherwise tax payable from Re. 1. [N/No. 33/2012]

As per Section 69(2) and the Rules made thereunder, registration is compulsory if the aggregate value of taxable services exceed Rs. 9 Lacs.

2 Like

kiran (accounts exe. ) (23 Points)
Replied 02 December 2013

i have given service to ltd company and ltd company given to us serrivce tax i want to know we are paid on behalf of company expenses accure and after calim so only expenses cliam or along with service tax

kiran shukla

aishwarya s raghavan (student) (224 Points)
Replied 03 December 2013

Originally posted by : kiran

Could you please explain clearly

aishwarya s raghavan (student) (224 Points)
Replied 11 December 2013

Say suppose if the organisation receives sponsorship money from a company (ABC LLC) in abroad, who pays it on behalf of its counterpart say subsidiary in India (ABC Pvt Ltd), then is the service provider liable for service tax on such sponsorship service?