TaxTMI 
TaxTMI 
Conference Sponsorship from Outside India
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....onference Sponsorship from Outside India<br> Query (Issue) Started By: - Ajay Sachdeva Dated:- 7-7-2018 Last Reply Date:- 6-8-2018 Goods and Services Tax - GST<br>Got 10 Replies<br>GST<br>We are proprietorship firm. We are organizing an international Conference at New Delhi next year ie Feb 2019. We are expecting to receive sponsorship for the same from some overseas companies. Do we need to charg....
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....e them GST for the same? Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: In my view GST is payable on reverse charge basis. Reply By Ajay Sachdeva: The Reply: Does the reverse charge mean that we charge the client and they can claim back. How does it work? Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: Under Reverse charge mechanism the service recipient is to pay GST as if he is a service pr....
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....ovider and he can claim input tax credit. Reply By KASTURI SETHI: The Reply: I support the views of Dr.Govindarajan Sir. Reply By Ravikumar muthusamy: The Reply: RCM? still applicable other than GTA? Reply By KASTURI SETHI: The Reply: Yes. RCM Applicable other than GTA in the context of query. Reply By Ajay Sachdeva: The Reply: Thank you for your clear response. It is greatly useful and ap....
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....preciated. Reply By Brijesh Verma: The Reply: Dear Mr. Sachdeva I respectfully and humbly differ with the views expressed by Hon'ble subject experts in your matter. In my view, the receipt of sponsorship amount by your Indian proprietorship firm is against 'sponsorship services provided by' your Indian firm and not against any 'services received' by it. This fact, therefore....
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...., makes your Indian entity a service provider rather than a service recipient. It is interesting to note that sponsorship service is one category that has created doubts ever since its inception as to who is the service provider and who is the receiver of services. Please note that in case of sponsorship services, the provider is the person who 'receives the sponsorship money' and the per....
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....son paying the money is 'service receiver'. Even technically, it is only a receiver of services (here sponsorship service in your case) who makes the payment (the foreign companies, in your case). Therefore, RCM applicability is absolutely out of the equation since your proprietorship firm is a service provider here and in terms of Notification No. 10/2017 (ITR), RCM (if at all applicable....
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....) is on service receiver. Now coming to the taxability of your matter, please refer section 13(5) of the IGST Act which specifies the place of supply of services supplied by way of admission to, or organisation of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admis....
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....sion or organisation, shall be the place where the event is actually held. In my humble opinion, therefore, your firm must charge tax on such sponsorship amount separately from the foreign companies. Respected experts may kindly correct my version and I shall be more than happy to rectify the errors, if any, in my understanding. Regards, Brijesh Verma Reply By KASTURI SETHI: The Reply: Sh.Br....
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....ijesh Verma Ji, . Thanks for throwing more light on the issue. Reply By Ganeshan Kalyani: The Reply: In both way, tax is payable by the querist.<br> Discussion Forum - Knowledge Sharing ....