Exemption available under service tax to Services provided to a recognized sports body

By | November 1, 2013

Exemption available under service tax to Services provided to a recognized sports body by-

(a)    An individual as a player, referee umpire, coach or manager for participation in a tournament or championship organized by a recognized sports body,

(b)   Another recognized sports body.

Recognized sports body means :

  •  The Indian Olympic association
  •  Sports authority of India
  •  A national sports federation recognized by the ministry of sports and youth affairs of the central government, and its affiliate federations
  •  National sports promotion organization recognized by ministry of sports and youth affairs of the central government.
  •  The international Olympic association or a federation recognized by the international Olympic association or
  •  A federation or a body which regulate a sport at international level.

Nature of services covered – the important point about nature of service is that relevant service must be provided to a ‘recognized sports body’. If services are provided to any person other than recognized sports body then the benefit of this exemption cannot be claimed.

With a view to participate in a tournament or championship services provided by an individual in respect of any of the following capacities only, are entitled for exemption under this cluse:

  • Player
  • Referee
  • Umpire
  • Coach
  • Manager

In other words, services are provided by an individual in any other capacity such as a selector/commentator/curator/technical expert etc are not entitled for exemption under this clause.

  1. The tournament or Service provider may be another recognized sports body.
  2.  championship must be organized by a recognized sports body.

Hence, the service of a player to a franchisee which is not a recognized sports body is taxable. However, services of an individual as umpire, referee when provided directly to a recognized sports body shall be exempt.

 

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