https://www.taxtmi.com/forum/issue?id=113942 Sponsorship services are subject to the Reverse Charge Mechanism and when a firm records sponsorship expenses, the firm as recipient-including a private limited company as a body corporate-is liable to pay service tax. Non-use of the service in the recipient's taxable output does not remove the RCM incidence, and the element of consideration is treated as present. If the sponsorship is not an output service under the Cenvat Credit Rules, the recipient generally cannot claim Cenvat credit against that tax. en-us Tue, 10 Jul 2018 19:53:16 +0530 Thu, 23 Jan 2025 15:55:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=113942 Sponsorship services are subject to the Reverse Charge Mechanism and when a firm records sponsorship expenses, the firm as recipient-including a private limited company as a body corporate-is liable to pay service tax. Non-use of the service in the recipient's taxable output does not remove the RCM incidence, and the element of consideration is treated as present. If the sponsorship is not an output service under the Cenvat Credit Rules, the recipient generally cannot claim Cenvat credit against that tax. Discussion-Forum Service Tax Tue, 10 Jul 2018 19:53:16 +0530 https://www.taxtmi.com/forum/issue?id=113942