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

[Mahir S]

Sir,

Service tax is not applicable on Exhibition under reverse charge basis.

However, it is applicable in respect of services provided or agreed to be provided by way of sponsorship, under which the service receiver is liable to pay service tax on the total amount paid for such sponsorship to the service provider.

[DR.MARIAPPAN GOVINDARAJAN]

The views of Shri Naveed are correct.

AI Summary

Reverse charge: payments for exhibition premises rental and ancillary charges are not covered, but sponsorship services attract receiver liability. Payments to exhibition agencies for premises rental and ancillary charges are not subject to service tax on a reverse charge basis, whereas services provided by way of sponsorship attract reverse charge liability, obliging the service receiver to pay service tax on the total amount paid to the service provider.