EVENT MANAGEMENT

Date of introduction :

16.08.2002 – vide Notification No. 8/2002 Dated 1.8.2002
 

Definition :
“Event Management” means any service provided in relation to planning, promotion, organising and presentation of any arts, entertainment, business, sports or any other event and includes any consultation provided in this regard.
(Section 65 (34) of the Finance Act, 1994, as amended)

“Event Manager” means any person who is engaged in providing any service in relation to event management in any manner.
(Section 65 (35) of the Finance Act, 1994, as amended)

Taxable event and scope of service :
“Taxable Service” means any service provided to a client by an event manager relation to event management. (Sub clause (ZV) of clause-90, Section 65 of the Finance Act, 1994,)

An event manager is hired to execute an event such as product launch of any corporate, promotional activities, concerts/rock show, official meets, award functions, beauty pageants, entertainment events, exhibitions, private functions, sports events etc. Event manager uses his expertise and ideas to manage an event. Event manager is supposed to manage a venue, sets includin g decoration of sets, mandap, chair, table, barricades, sound, light, video, electricals, security, communication, invitations to the event / sale of tickets and publicity of the event. He also manages the stage show, artist, musicians, choreographers and other miscellaneous items for holding of event. All services provided by the event manager are liable to service tax. This also covers any consultation provided for organising an event.
(Board’s Notification F.No.B 11/1/2002-TRU dtd.1.8.2002)

Value of taxable service :

The gross amount charged by the event manager from the client is the value of taxable service which is inclusive of amount payable to sub-contractors, if any.

Exemption and exclusion :
In case of in-house event or the event organised/managed by the sponsor himself, no service tax is leviable. Service tax is not
leviable on the sale proceeds of tickets or revenue generated from the sale of space.
 

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