According to Section 65 (105) (zzzn), to any person, by any other person receiving sponsorship, in relation to such sponsorship, in any manner;
According to Section 65 (99a), “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.
Body corporate or firms involved in business or commerce sponsor events with an intent to obtain commercial benefit or bringing their name or products or services in public image to public attention by associating with a popular or successful event. This is an alternate form of advertisement. Consideration is normally paid in return for naming of the event after the sponsor or displaying the sponsoring company's logo or trading name or giving the sponsor exclusive or priority booking rights. Service tax is leviable only when the sponsor is any body corporate or firm. Sponsorship of sports events is excluded from the scope of this levy.
(a) Small service providers whose aggregate value of taxable services rendered in the previous year has not exceeded the limit of Rs. 10,00,000/- (Service Tax Notification No. 8/2008-ST dated 01.03.2008)
(b) Services provided to the United Nations or International Organisations
(c) Services provided to Special Economic Zones (SEZ) units (including unit under construction) and SEZ developers
(d) Services which are exported as per ‘Export of Services’ Rules
(e) Services provided for official or personal use of foreign diplomatic missions and family members of diplomatic missions.
(f) Services provided by Reserve Bank of India
(g) Out of total value of service provided proportionate value of goods and material provided by the Service Provider
Sponsorship Service: Sports Event: Since the sponsorship agreement falls within the exclusionary clause i.e. the clause which excludes sponsorship services in relation to sports events, the appellant is clearly immune to the charge of service tax.
Sponsorship Service: Sale of Space or time for advertisement: Demand: Stay: Argument of the appellants that it was sponsorship service for which sponsorer was liable to pay service tax: On the basis of decision of pre deposit given by Tribunal in the case of United Spirits, directions issued to the appellants to make partial pre deposit.