Service tax on sponsorship

Hi, 

As per the notification no:30/2012 ST , Service receipient will have to pay the 100 % of service tax on the Sponsorship service. Here in this case State Public Sector company will have to pay the service tax of 12.36 % on Rs 10 lacs.

Dear Mr. Sunil,

If my understanding of the fact given is correct, bank is required to pay the service tax on sponsorship on reverse charge basis.

The public sector company is launching a new product which it advertises in TV, hoardings etc., The company has received Rs. 10 lakhs from the bank and displays the bank's logo in the TV, hoardings etc., Hence service receiver is BANK and service provider is Public sector company. This is because bank is receiving indirect service of advertisement and the company procides the service by displaying the logo of the bank in the ad.

Thanks,

Saravanakumar G

In case of sponsership, if the receiver is a body corporate or a partnership firm, located in the taxable territory, the liable to pay tax is on the service receiver due to reverse charge under not. 30/2012.

so, the bank must pay full tax @ 12.36% on Rs. 10 Lacs. 

Fully agree with views of Mr. Saravankumar.

hi,

A Trade union received a sponsorship amt. of Rs.100,000 from an company for an event, in return it allowed the company to exhibit its products on that event. please help with the service tax leviability in this situation.

The Company will be liable to pay service tax (100%) under Revese charge Machanisam. if receipent is Not Partnership firm or Body Corporate in that case the provider will be liable.