Case on Service Tax

[disha shenoy]

Dear Sir,

A pvt ltd Company contributed a sum of Rs 1 Lakh to a marathi organisation in Dubai for world marathi convention, on A/c of main sponsorship. Application of TDS and Service Tax.if the donee is a resident and a non resident.

Please help.

[Ankit Gupta]

In case of sponsorship service tax need to be paid under reverse charge. The status is immaterial. You have to pay service tax under reverse charge. You need to analyze whether you can avail credit of the same.

[Guest]

I agree with what is stated by Mr. Ankit Gupta.

AI Summary

Sponsorship payments attract reverse-charge service tax irrespective of recipient residence; assess input tax credit eligibility. Sponsorship payments constitute taxable services and attract service tax payable under the reverse charge mechanism irrespective of the recipient's residence; parties should assess whether service tax paid under reverse charge is eligible for input tax credit, while withholding tax (TDS) implications were not addressed in the advisory responses.