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

Service Tax on Sponsorship Services: Report as Service Receiver per Notification No. 30/2012-ST in ST-3 Return. A query was raised regarding the correct reporting of service tax for sponsorship services in the ST-3 return. Specifically, it questioned whether a body corporate that sponsors an event, thereby having its hoardings displayed, should report as a service provider or service receiver. A response clarified that, according to Notification No. 30/2012-ST, the service tax for sponsorship services is entirely payable by the service receiver. Therefore, the entity should report as a service receiver in the ST-3 return. Another participant confirmed this explanation without further additions.