08 January 2015
Under reverse tax mechanism of Service tax: 100% Service tax liability is to be paid by service receiver on the services rendered by Advocate & a firm of advocates. Plz make me clear, Suppose An Advocate is a small scale service provider & he is exempted to pay service tax liability as bills of services issued by him is below 10 lac during Fy 12-13. Or he has to pay tax in case he cross the taxable limit of 10 Lac during Fy12-13. I want to know in both the above cases will receiver of service pay the service tax.
08 January 2015
Advocate need not pay service tax even he crosses 10 lac limit. In both the cases service receiver has to pay service tax provided service receiver is a business entity that has turnover more than 10 lacks in preceding financial year receives legal service, business entity has to pay whole service tax under reverse charge mechanism.