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

Service tax under reverse charge applies to sponsorship payments abroad; consider credit options for tax efficiency. A private limited company contributed INR 1 lakh to a Marathi organization in Dubai for a world Marathi convention as a main sponsor. The query concerns the application of TDS and service tax if the recipient is a resident or non-resident. Ankit Gupta responded that service tax must be paid under reverse charge, regardless of the recipient's status, and suggested analyzing the possibility of availing credit. Ashok Jogalekar concurred with Gupta's advice.