Legal services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2013 Hi ,

A person charged to our company 75000/- for his legal services bt didn't charge any service tax. he told us to pay the service tax from hi sside to the govt .

can anyone help me for this ....how to pay service tax & what would be the amount of tds ? tds will charged on 75000/ or after adding srevice tax & wat is percentage of tds

its urgent

CA Neha Chauhan

CA Neha Chauhan (Expert)
Follow

11 March 2013 you have to pay servicetax under reverse charge mechanism at the 12.36% rate and you have to filed the return for the same...for the TDS, you have to deduct TDS on 75000/- at 10% as Legal Service is a part of Professional services...

Regards,
Neha Chauhan

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2013 TDS will be charged on 75000+service tax or only 75000?

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2013 and what is reverse charge Machanism?

CA Neha Chauhan

CA Neha Chauhan (Expert)
Follow

11 March 2013 TDS should be on 75000,
Under this scheme, service tax is payable by service recipient instead of service provider . Under this charge service receiver have to register himself under service tax . Further service receiver can not claim general exemption limit of 10 Lakh rupees.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now