TaxTMI 
TaxTMI 
TaxTMI 
Sponsorship service
SANDESH SHINDE
Dear Sir, Pls explain point of taxation in case of sponsorship services for both service receiver and service provider in simple words, thanks and regards
Clarification on Taxation for Sponsorship Services: Service Receiver Pays 100% Service Tax; Key Dates for Reverse Charge Services. A query was raised regarding the point of taxation for sponsorship services, specifically for both service receivers and providers. The response clarified that, according to Notification No.30/2012-ST and Service Tax Rules, the service receiver is responsible for paying 100% of the service tax on sponsorship services. For reverse charge services, the point of taxation is the payment date if made within three months of the invoice date. If not paid within three months, the point of taxation is the date immediately after this period. Prior to October 1, 2014, the payment period was six months. (AI Summary)