Sub:    .

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Copy of Circular No: 68/17/2003-ST dated 28.11.2003 (F.No.B11/1/2002-TRU, Dated 01.08.2002)  of the Government of India, Ministry of Finance, Department of Revenue, Central Board of Excise and Customs on the above subject is communicated herewith for information and necessary action. The contents of this trade notice may be brought to the knowledge of all concerned.

                                                      (U.NIRANJAN)

 JOINT COMMISSIONER

CHENNAI III

(Issued from File C.No.IV/16/302/2003 S.Tax)

Circular No.68/17/2003 – ST.

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF EXCISE & CUSTOMS

                                                New Delhi, the 28^th November, 2003.

        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 01.08.2002 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 uses 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 organized/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.

Sd/-

(Manish Mohan)

Under Secretary to the Govt. of India