Circular No. 68/17/2003-ST
Nov 28, 2003
Subject – Clarification on the scope of the Service of “Event Management” Regarding.
An issue has been raised whether a firm/person who are undertaking activities of organising “Trade Fairs” and Exhibitions soliciting the participation from the trade and Industry and provides space or may in addition provide furniture, cabins, security, electricity, etc., and charge their customers accordingly fall within ambit of “Event Management” or not.
2. “Event Management” [Sec. 65(40)] means any person who is engaged in providing any service in relation to event management in any manner. Further, as per clarification issued by service tax Instruction F. No. B11/1/2002-TRU, dated 1-8-2002 that (a) An event manager is hired to execute an event such as product launch of any corporate, promotional activities, exhibitions and private functions, etc. Event Manager users his expertise and ideas to manage an event; (b) Service Tax is not on Event as such but on the service provided for managing an event.
3. The above provisions & clarifications lead to one conclusion i.e. for occurrence of taxable event “provision of event management service”, there has to be a sponsor at whose behest an event is organized and event manager, who organises such services. Therefore, it is to clarify that service tax is not on the event but on the service provided on managing an event. Therefore in case where that event is organised /managed by the sponsor himself, no service tax is payable as “Event Management”.
4. Suitable trade notice may be issued for the benefit of the trade.
5. The receipt of this Circular may kindly be acknowledged indicating the date of its receipt in your office.