Service Tax liability on Sponsorship

[Pradeep Jain]

for Genset business, we are sponsoring  an entertainment meeting with a talent hunt show  only doctors children.

 

Is service tax is payable on the amount payable for the same.

 

REgards

 

Pradeep Jain

[YAGAY and SUN]

The sponsor is liable to pay the service tax under reverse charge mechanism under this taxable category of services.

AI Summary

Service tax reverse charge applies to sponsorship payments, making the sponsor liable for tax on entertainment event support.
Where sponsorship of an entertainment programme is a taxable service, the sponsor is required to discharge service tax under the reverse charge mechanism, making the sponsor responsible for reporting and remitting tax on the sponsorship of entertainment services.