Sponship service or sale of space for advertisement service

[Asked by Guest]

Sir, First of all Thanks for your reply for issue ID 262. Now please advice us If the receiver of service (sponsor) is not a corporate entity or firm whether we will be liable for service tax u/s 68(2) as we are a Company ? or Can our case be covered under the head "sale of space for advertisement service" if we book the income as income from advertisement?

Regds CA

Neetu Bohara

[Surender Gupta]

If the sponsor i.e. receiver of service is neither corporate entity nor firm, no service tax is payable at all by hte either party.

AI Summary

Service tax liability absent where advertisement space recipient is neither corporate nor firm, so no tax payable by either party.
Liability for service tax under section 68(2) in respect of sale of advertisement space or sponsorship services depends on the recipient's status; if the recipient is neither a corporate entity nor a firm, no service tax is payable by either the provider or the recipient.