The Goods and Services Tax (GST) Council's decision on Saturday to tweak a rule on corporate sponsorships is set to make these deals more tax efficient and the recipient of funds better off, officials and experts said.
The Council's decision to shift the onus of remitting tax on sponsorship deals from the donor—that is, the entity that receives the benefits of a sponsorship deal in terms of brand promotion and access to target audience etc—to the entity that offers it for a price, for example, a sports event organizer, is set to enable the latter to lower its overall tax liability, they said.
The current regime of making the recipient entity liable to charge the tax on the transaction and pay the government is an exception to the general indirect tax rule of suppliers of goods or service collecting the same and remitting to the government. This exception is called reverse charge.
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Denne historien er fra December 24, 2024-utgaven av Mint Ahmedabad.
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Diageo, Sequoia accused of dubious payments
The CBI said Diageo Scotland made a suspicious fund transfer to Karti Chidambaram's firm
SC Stays Tax Notices of ₹1.5 tn to E-gaming Cos
The gaming companies and the revenue department both sought the stay
India to be testbed for green technology
The Global Energy Alliance for People and Planet (GEAPP) plans to use India as a testbed for new decarbonization technologies that would then be commercially operationalized in other developing countries.
Rupee hits new record low, slips to 85.97/USD
The rupee slipped to its all-time low on Friday as the dollar stood firm ahead of closely watched US labour market data, keeping regional currencies on the defensive.
Vedanta Gets $300 Mn in Loans to Refinance Debt
Vedanta Resources—the parent firm of Mumbai-based mining conglomerate Vedanta Ltd—on Friday said it has secured $300 million in loans from a clutch of leading global banks such as Barclays and First Abu Dhabi Bank for refinancing its 2024 and 2026 bonds.
Norms for medical devices tightened
The norms for kits, medical devices makers aim to prevent misuse of raw materials collected from blood centres
Reits, Invits, Muni bonds could surpass equity, debt
In the last nine months, ₹3.3 tn has been raised in equity, and it is expected to reach a total of ₹4.3 tn by year-end
Industrial Output Surges to a 6-Month High of 5.2% in Nov
Despite the Nov rebound, industrial output growth for the Apr-Nov period stood at 4.1%
Infy says exec stalled suite before Cognizant switch
Infosys in its suit said Cognizant is not allowing business to flourish from the healthcare segment
Tata Capital gearing up for 1st dollar bond sale
Tata Capital Ltd is gearing up for its first dollar bond sale, according to people familiar with the matter, marking another addition to the wave of offshore debt sales by Indian shadow lenders over the past year.
