Taxability under Sponsorship Service

[Asked by Guest]

We are organising a DANDIYA programme. Various companies are giving sponsorship fee to us for advertsements of their product. Please advise us how we are covered under Sponsorship Service. Please expediate.

[Surender Gupta]

You are the orgnaizer of programm and providing sponsorship service. The liability of service tax is on the service receiver i.e. the companies which are giving sponsorship fees.

AI Summary

Sponsorship Service: service tax liability rests on the company paying sponsorship fees, not the event organiser.
Sponsorship for event advertising constitutes Sponsorship Service when an organiser provides promotional opportunities for companies; the organiser is the service provider, and service tax liability is borne by the service receiver-the companies paying sponsorship fees.