When a business is liable to pay reverse charge on service received
1)-Whether all business entities liable to pay service tax on reverse basis (In case of applicable service)
Or
2)- only those business entities(Service receiver) Turn over exceeds Rs.10 lakhs liable to pay Service tax on reverse charge basis.
As I understand, the exemption limit of Rs.10 lacs is not applicable under RCM. Hence whoever liable to pay, is required to pay.
Then this 10 lacs exemption of Turnover is avaiable only for Business entity availing legal service.
Since it is exepted by mega notification no 25/2012-ST.
My doubt since this exemption is withdrawn w.r.t Senior Advocates.
So legal services provided by other local advocates will continue to be exempted & RCM will continue for same.
& RCM wont be applicable if service is provided by senior advocates,.
O P Bagla & Co LLP
New Delhi
CA Inter
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