Registration of service provider under reverse charge

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This query is : Resolved

Pankaj Sharma (Querist)

09 July 2013 Dear sir/madam If reverse charge applicable in any case let say in case of Legal services, is it mandatory for service provider (i.e. lawyer) to get himself registered under service tax?

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)

09 July 2013 Prima facie NO as person liable to pay tax is liable to take registration where aggreagate value of taxaxble service in a FY exceeds Rs 9 lakhs... As here RCM applicable where the person liable to pay tax is service recipeint....

Ganeshbabu K

Ganeshbabu K (Expert)

09 July 2013 1)In case of Taxable service provided or agreed to be provided by an individual advocate to any business entity (company/firm) located in the taxable territory (India excluding J & K) service tax is payable by the person receiving the service(company/firm) as provided under serial no. 5 of the Table annexed to Service Tax Notification No. 15/2012 dated 17.3.2012

2)Thus an individual lawyer is neither required to be registered with service tax nor liable to pay service tax.

3)The client of a lawyer is liable to pay service tax and to file the returns as service receiver in this situation. Any demand for non-payment of service tax will be issued to the client.

4)The service provided by an individual lawyer to an individual is already exempt from service tax under serial no. 6 of Service Tax Notification No. 12/2012 dated 17.3.2012

Please note...

if suppose you need to pay any amount to another individual lawyer...in that case you are required to pay service tax and hence in such a case you need to register with service tax...

Thanks ®ards
Ganesh babu k

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