RCM ON SPONSORSHIP

[KVRAVI RANGARAAJAN]

IS SPONSORSHIP BY A CORPORATE FOR A PARTICULAR EVENT, TO THE EVENT MANAGEMENT ORGANIZATION (SAY, A SOCIETY OR TRUST REGISTERED UNDER GST) IS ELIGIBLE FOR RCM ?

[KASTURI SETHI]

Notification No.13/17-C.T.(Rate) dated 28.6.17

Sl. No.

Category of Supply of Services

Supplier of service

Recipient of Service

4

Services provided by way of sponsorship to any body corporate or partnership firm.

Any person

Any body corporate or partnership firm located in the taxable territory.

[YAGAY and SUN]

We do endorse the view of Kasturi Sir.

[KVRAVI RANGARAAJAN]

is any person means only individual or a registered society/trust can also included

[KASTURI SETHI]

As per definition of " person" under GST Act.

[Ganeshan Kalyani]

Sponsorship service is covered under reverse charge notification.

[Ganeshan Kalyani]

(84) “person” includes–

(a) an individual;

(b) a Hindu Undivided Family;

(c) a company;

(d) a firm;

(e) a Limited Liability Partnership;

(f) an association of persons or a body of individuals, whether incorporated or not, in India or outside India;

(g) any corporation established by or under any Central Act, State Act or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013);

(h) any body corporate incorporated by or under the laws of a country outside India;

(i) a co-operative society registered under any law relating to co-operative societies;

(j) a local authority;

(k) Central Government or a State Government;

(l) society as defined under the Societies Registration Act, 1860 (21 of 1860);

(m) trust; and

(n) every artificial juridical person, not falling within any of the above;

[Ganeshan Kalyani]

Society, trust is also a person under gst.

[DR.MARIAPPAN GOVINDARAJAN]

Very good information for updation. Thank you all.

AI Summary

Reverse charge on sponsorship services applies when the recipient is a registered society or trust in the taxable territory.
Sponsorship services fall within the GST reverse charge notification where the recipient is a body corporate or partnership firm in the taxable territory; the GST definition of "person" includes societies and trusts, so a registered society or trust acting as an event management organization qualifies as a recipient under that reverse charge provision for sponsorship services.