RCM sponsorship

[Madhavan iyengar]

Dear Experts

Where a Company receives sponsorship Income from a Individual who is not Registered will the same be chargeable to tax under forward charge by the Company since RCM provisions of sponsorship apply only to a body corporate and Partnership firm and not to a Individual Experts pls clarify or can it be treated as exempt as RCM does not apply

AI Summary

Reverse charge on sponsorship: not triggered where a registered company supplies to an unregistered individual, forward charge applies.
When a registered company supplies sponsorship services and the counterparty is an unregistered individual, the reverse charge provision for sponsorship (which places liability on the recipient when the recipient is a body corporate or partnership) does not apply; the registered company as supplier must account for GST under the forward charge for taxable sponsorship services.