Recently, the Central Government vide Notification No. 01/2014-Service tax dated January 10, 2014 widen the scope of Mega exemption notification No. 25/2012 dated June 20, 2012 by inserting the words “or country” in the opening paragraph, in entry 11, in item (a) of the said notification.

Earlier, an assessee providing sponsorship of sporting events organised by a national sports federation, or its affiliated federations was exempted vide entry no. 11, item (a) of the above said notification only if the participating teams or individuals represents district, state or zone. If the participating teams or individuals represent any country, no exemption was earlier provided.

With the above insertion in the said notification, w.e.f. January 10, 2014 the exemption scope has been widened by covering teams or individuals representing country. Therefore, it can be said that now the sponsorship for sporting event in which international teams or individuals are participating is also exempt.