Conference Sponsorship from Outside India
Query (Issue) Started By: – Ajay Sachdeva Dated:- 7-7-2018 Last Reply Date:- 6-8-2018 Goods and Services Tax – GST
Got 10 Replies
GST
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 servi
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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
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