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:
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.
- The tournament or Service provider may be another recognized sports body.
- 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.