A company paid Rs.12,000 to tennis tournament event for displaying their banner/flex & accounted same as advertisment expenses.Do company need to pay reverse charge on considering same as sponsorship service.As full reverse charge is applicable on sponsorship service availed by a body corporate.
Yes company pay 100% ST Under RCM
In relation to Sponsorship service provided, SR is required to pay 100 % service tax under reverse charge mechanism if SR is Body Corporate or Firm and is situated in Taxable Territory.
As company has paid 12000 to tennis tournament for display of banner, then Comapany in Question is required to pay Service tax under RCM.
R P S K & Associates
Nashik
CA Inter
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CAclubindia
