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Conference Sponsorship from Outside India, Goods and Services Tax - GST

Issue Id: - 113931
Dated: 7-7-2018
By:- Ajay Sachdeva
Conference Sponsorship from Outside India

  • Contents

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 charge them GST for the same?

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Showing Replies 1 to 10 of 10 Records

1 Dated: 7-7-2018
By:- DR.MARIAPPAN GOVINDARAJAN

In my view GST is payable on reverse charge basis.


2 Dated: 7-7-2018
By:- Ajay Sachdeva

Does the reverse charge mean that we charge the client and they can claim back. How does it work?


3 Dated: 7-7-2018
By:- DR.MARIAPPAN GOVINDARAJAN

Under Reverse charge mechanism the service recipient is to pay GST as if he is a service provider and he can claim input tax credit.


4 Dated: 8-7-2018
By:- KASTURI SETHI

I support the views of Dr.Govindarajan Sir.


5 Dated: 8-7-2018
By:- Ravikumar muthusamy

RCM? still applicable other than GTA?


6 Dated: 8-7-2018
By:- KASTURI SETHI

Yes. RCM Applicable other than GTA in the context of query.


7 Dated: 8-7-2018
By:- Ajay Sachdeva

Thank you for your clear response. It is greatly useful and appreciated.


8 Dated: 12-7-2018
By:- Brijesh Verma

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, 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 person 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) 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 admission 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


9 Dated: 13-7-2018
By:- KASTURI SETHI

Sh.Brijesh Verma Ji, . Thanks for throwing more light on the issue.


10 Dated: 6-8-2018
By:- Ganeshan Kalyani

In both way, tax is payable by the querist.


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