Hello Friends,
One of our client is receiving sponsorship for 75000/- towards calendar shoot from Hathway.In turn my client is displaying the sponsor logo in the calendar( my client is engaged in Media service)
As per service tax act, service recipient has to remit service tax @ 12.36% to govt. What will be accounting treatment in my client books?
Regards
Swathi
The client is required to book only the sponsorship income, if the service recipient is any bodycorporate or partnership firm located in the taxable territory. No need to pass any entry related to service tax.
Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
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K R Kiran Kumar & Associates
Bengaluru
CA Inter
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CCI
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