Sponsorship service

[Asked by Guest]

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

AI Summary

Reverse charge on sponsorship services: payment timing determines point of taxation and shifts liability to the service receiver.
Sponsorship services under reverse charge place liability on the service receiver while otherwise the provider is taxable. The point of taxation under reverse charge is the date of payment if payment occurs within the prescribed period; if not, it is the date immediately following that prescribed period, with the prescribed period having been shortened by subsequent amendment.