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Urgent - reverse charge

CA SUKSHAM ARORA (CA) (569 Points)

26 August 2014

CAN ANYONE PLEASE TELL ME IF THE REVERSE CHAREGE IS APPLICABLE IF WE ARE OURSELF PROVIDING SOME SORT OF SERVICE AND GET CONSULTANCY FROM PROFESSIONAL WHO HAS RECIEPTS BELOW 10 LAKHS

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4 Replies

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 26 August 2014

Dear Suksham,

first of all in case of reverse charge, limit of 10 lacs is not to be considered by the receiver. the receiver has to pay service tax irrespective of the provider's liability.

Secondly, on normal professional service, RCM is not applicable, but on advocate service 100% liability is of receiver.

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 26 August 2014

If your turnover during the preceding FY was exceeding Rs. 10 Lacs and you have received LEGAL SERVICES from any Advocate or Firm of Advocates, then you shall be liable to pay service tax thereon under RCM even if your taxable services during the current year is below Rs. 10 Lacs and irrespective of the turnover of the service provider.