Sponsorship Service

[Guest]

Dear Sir,

If we as Body corporate sponsors any event i.e. in any event our hoardings are displayed that's we pay service tax in case of Sponsorship service. So in ST3 return where we have to show it as a Service provider or under Service Receiver.Please explain,thanks and Regards.

[Rajagopalan Ranganathan]

Sir,

Vide Sl. No. 3 of Notification No. 30/2012-ST dated 20.6.2012 as amended which states that in respect of services provided or agreed to be provided by way of sponsorship percentage of service tax payable by the person receiving the service is 100%. Therefore in ST-3 return you have to show it as service receiver.

[Mahir S]

Yes sir, nothing more to add to it.

AI Summary

Sponsorship service liability: recipient must discharge service tax and report the transaction as service receiver in returns. Sponsorship services place the service tax liability wholly on the person receiving the service; therefore recipients must discharge the tax and declare such transactions in their service tax returns as the service receiver.