Legal service

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This query is : Resolved

LALIT (Querist)

12 October 2015 Legal services provided by an individual advocate or partnership firm to a Real- estate company is to be taxable or not .

Please advise

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 October 2015 Service tax payable by the real estate company under RCM if its turnover is more than 10 lacs.

LALIT

LALIT (Querist)

12 October 2015 Thanks for your prompt reply .
Real estate company turnover is more than 10 lacs during the year but total receipts / services of individual advocate / firm is less than 10 lacs during the year . Even in last three preceding years .

Then, In this case Real Estate company is liable to pay service under RCM.

Please advise

LALIT

LALIT (Querist)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 October 2015 Real estate company's turnover is relevant company is liable for service tax under RCM.

Message likes : 1 times

Amol S Joglekar

Amol S Joglekar (Expert)

12 October 2015 for RCM, no limit as such comes into play.....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 October 2015 Mr Amol S Joglekar are you sure.

Amol S Joglekar

Amol S Joglekar (Expert)

14 October 2015 small service provider exemption is not available under reverse charge mechanism and service receiver has to register himself under reverse charge mechanism without considering how much amount he is required to pay under RCM. Sometimes service provider is availing SSI exemption and does not charge service tax in bill. Still service receiver are required to pay service tax as service receiver if RCM is applicable.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 October 2015 Please go through the RCM provisions on legal services. Don't comment without seeing the provisions.

Amol S Joglekar

Amol S Joglekar (Expert)

15 October 2015 Are you getting confused with the turnover limit of PRECEDING FINANCIAL YEAR?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 October 2015 It is a healthy discussion kindly go through the provisions of RCM relating to legal services. why you are not seeing the provisions. For legal services it is a different one.

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