Reverse charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2014 Request your advice:

1.My client(Hotel) has paid consultancy charges and Internal audit fees to me and now the client(Hotel) has received notice from ST department demanding to pay service tax under Reverse Charge Mechanism.

Annu Agarwal

Annu Agarwal (Expert)
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20 August 2014 If you have provided consultancy services as an advocate to your client ,then service tax needs to be paid by your client under reverse charge.(Notification No.30/2012)Pleas note that “Legal service” means “any service provided in relation to advice,
consultancy or assistance in any branch of law, in any manner and
includes representational services before any court, tribunal or
authority;”

As far as internal audit fees is concerned,i doubt if the service tax department has considered it s security service.As per my opinion service tax is not payable under reverse charge on internal audit fees.

Rupesh Jain

Rupesh Jain (Expert)
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20 August 2014 if you are advocate then reserve charge will pay the company(hotel). otherwise not required .

any service provide by the advocate will be charge under the RCM.

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