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If reverse charge mechanism applicable?

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Aly Merchant

Aly Merchant (Querist)

28 December 2013 Is reverse charge mechanism of service tax applicable to any services rendered by a LAWYER?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

28 December 2013 Yes applicable. Service recepient will have to pay service Tax @12.36% under reverse charge.

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@VaibhavJ

@VaibhavJ (Expert)

28 December 2013 Hi,

Notification No. 25/2012 dated 20.06.2012 exempts "service provided by an individual as an advocate or a partnership firm of advocates by way of legal services to a business entity with a turnover up to rupees ten lakh in the preceding financial year".

Hence, if the turnover of business entity ( including company)receiving legal services is less than Rs 10 lakhs in P.Y then it is not liable to pay service tax under reverse charge mechanism in legal services.

Thanks

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