TaxTMI 
TaxTMI 
Registered Association of Oncologists of India , has received funds from Medical drugs company for seminar and other charitable work and they have deducted tds u/s 194C of Income tax. The department has given show cause to tax receipts from Medical drugs company under service tax. Kindly guide whether taxable under service tax.
receipts under section 194C by association of oncologists of india
15 Jan 2023 
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Sponsorship as service: reverse-charge may apply if payments confer corporate benefits; donations remain non-taxable.
Whether receipts from medical drug companies to a charitable association are taxable as services turns on whether the payments are for sponsorship or constitute donations/contributions. Sponsorship characterized as a service may attract service tax under the reverse charge mechanism payable by the corporate payer; genuine donations and member contributions and amounts covered by the mutuality doctrine are not services. The Department must provide positive evidence that a service was rendered; TDS entries alone do not establish service-tax liability. (AI Summary)
Whether receipts from medical drug companies to a charitable association are taxable as services turns on whether the payments are for sponsorship or constitute donations/contributions. Sponsorship characterized as a service may attract service tax under the reverse charge mechanism payable by the corporate payer; genuine donations and member contributions and amounts covered by the mutuality doctrine are not services. The Department must provide positive evidence that a service was rendered; TDS entries alone do not establish service-tax liability. (AI Summary)