Need Assistance - Write to us

Is Event Management Services Under Service Tax Taxable?


Event management ServicesEvent management means any service provided in relation to planning, promotion, organizing or presentation of any arts, entertainment, business, sports, marriage or any other event and includes any consultation provided in this regard.

Event manager means any person who is engaged in providing any service in relation to event management in any manner.

The details in this regard are –

Date from which such services are taxable – 16th August, 2002

Service provider – An event manager

Service receiver – Any person

Scope of taxable services – Any service provided or to be provided by any person, or by an event manager in relation to event management are taxable.

Amount on which tax is payable – The service tax is payable on gross amount which includes services the event manager may have availed on sub contract basis.

Taxability if organizer of trade fair provides event management services – If the organizer of trade fair engages event manager to provide event management service, the service will be liable as ‘ Event Management ’ services.

If the event manager himself provides service to the participants in the trade fair, question of tax liability of organizer of trade fair does not arise.

Exceptions in Service Tax-

  • Arranging yoga shibir by a charitable trust - Yoga camp (shibir) arranged by a charitable organization is not a commercial activity and hence cannot be taxed as ‘Event Management’ service.
  • Mere paying amount for rights to hold tournaments in name of association It is not regarded as ‘Event Management’ service and hence no service tax is attracted.
  • No tax on sale of tickets No service tax is required to be paid on sale proceeds of tickets or revenue generated from sale of space.

About: 

Alok Patnia founded Taxmantra.com, an expert in tax advisory & compliance. He is a Chartered Accountant having prior exposure with Ernst & Young & KPMG.

Entire content of Taxmantra.com is copyright protected. If you re-produce it on any medium, you must give a visible credit which should be linked to the original article. Any violation of the same will be deemed infringement and will be dealt accordingly.

Comments

comments