Reverse charge machanism

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2013 M/s ABC has receive Legal service (advocate ) than M/s ABC is liable to pay service tax under reverse charge machanism @ 12.36 %

As per Input service defination he can also take SET OFF or not ??

Nilesh

Nilesh (Expert)
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19 February 2013 YES , ABC would be liable to pay tax under reverse charge (assuming turnover exceeds 10lac)

You can take cenvat credit of service tax paid

poonam

poonam (Expert)
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19 February 2013 As per Central Govt. Notification no 30-2012 and 33-2012 on Service Tax, it is evident that in case of services provided by individual advocates or a firm of advocates, the service recipient is liable under the reverse charge mechanism to pay 100% of the tax liability @ 12.36%. (irrespective of the turnover of the service recipient, refer https://www.servicetax.gov.in/notifications/notfns-2012/st33-2012.htm)

Further the recipient can claim Cenvat credit on the same.

I hope it suffices.

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2013 Thanks to Poonam & Nilesh

So, Indirctly M/s ABC Does't have to pay any service tax for legal service
they just have to show in the RETURN that they are liable to pay S.T. & they have taken SET OFF for that

Is it correct ??

poonam

poonam (Expert)
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20 February 2013 No, M/s ABC in this case will have to pay the Service tax and thereafter they can claim the credit for the same.

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2013 Thanks Poonam once again now

I would like to one more Question to You " Are the Pure Agent is Liable to pay Service tax "