Sponsorship service provided to Government institute

[SANDESH SHINDE]

Dear Sir,

We are a mfg co, If we are Sponsoring any Government recognized institute only our company logo will be displayed in such conference. So as a body corporate, are we liable to pay service tax under reverse charge mechanism,please explain, thanks and regards.

AI Summary

Manufacturing company must pay full service tax on sponsorship; no exemption for non-sporting events under Mega Exemption Notification. A manufacturing company inquired about its obligation to pay service tax under the reverse charge mechanism for sponsoring a government-recognized institute, where only the company logo would be displayed. The response clarified that the company is required to pay the full service tax on the sponsorship amount without any abatement. The Mega Exemption Notification exempts service tax only for sponsorships related to specific sporting events organized by recognized sports bodies and associations, not for general sponsorships like the one described.