Services provided by way of Sponsorship - Service Tax Practice Manual / Ready Reckoner - Service Tax

Sr. No. 3 Services provided by way of Sponsorship Scope of Reverse Charge Service - ( Notification No. 30/2012- Service Tax, Part (II) Table Sl. No.3 ) From 1.7.2012 In respect of services provided or agreed to be provided by way of sponsorship Taxable services provided or agreed to be provided by way of sponsorship to anybody corporate or partnership firm located in the taxable territory; Liability on:- Service Provider Service Recipient % of tax Nil 100% Meanings and Definitions: Rule 2 (cd) of Service Tax Rules, 1994, Partnership firm includes Limited Liability Partnership ( LLP ). Rule 2 (bc) of Service Tax Rules, 1994, body corporate has the meaning assigned to it in clause (7) of section 2 of the Companies Act, 1956 (1 of 1956); Clause (7) of section 2 of the Companies Act, 1956 (1 of 1956) . - Body corporate or corporation ' includes a company incorporated outside India but does not include- (a) a corporation sole; (b) a co- operative society registered under any law relating to co- operative societies; and (c) any other body corporate (not being a company as defined in this Act) which the Central Government may, by notification in the Official Gazette, specify in this behalf. The term sponsorship has not been defined under Sec.65B. Prior to 1-7-2012 sponsorship was defined in section 65(99a) as follows : sponsorship includes naming an event after the sponsor, displaying the sponsor's company logo or trading name, giving the sponsor exclusive or priority booking rights, sponsoring prizes or trophies for competition; but does not include any financial or other support in the form of donations or gifts, given by the donors subject to the condition that the service provider is under no obligation to provide anything in return to such donors.