Service Tax on Reversal Basis - EXHIBTION

[RAM AVTAR]

Sir,

Whether any payment to EXHIBITION AGENCY on account of ' premises rental ' and ancillary charges is required to deduct service tax on reversal basis

AI Summary

Service tax not applicable on reverse charge for exhibition rentals, but applies to sponsorship services; receiver pays tax on full amount. A query was raised about whether service tax on a reverse charge basis applies to payments made to an exhibition agency for premises rental and ancillary charges. It was clarified that service tax is not applicable under reverse charge for exhibitions. However, service tax is applicable for services related to sponsorship, where the service receiver must pay service tax on the total sponsorship amount to the service provider. This view was confirmed by another participant in the discussion.