Goods and Services Tax

Conference Sponsorship from Outside India

Goods and Services Tax – Started By: – Ajay Sachdeva – Dated:- 7-7-2018 Last Replied Date:- 6-8-2018 – 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? – 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 provider and he can claim inpu

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9; 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

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