Reverse charge mechanism

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2013 Dear Sir/Mam,
Is Reverse Charge Mechanism will be applicable if Turnover of Business Entity is less than the Exemption Limit?(For Legal Services provided)

Aashish Tiwari

Aashish Tiwari (Expert)
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29 July 2013 for service receiver he has to pay service tax for all the reverse charge services and he cannot claim threshold limit of 10 lacs. For service providers the basic exemption is available.
https://www.caclubindia.com/experts/service-tax-on-reverse-charge-basci-exemption-1058934.asp

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Ganeshbabu K

Ganeshbabu K (Expert)
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29 July 2013 1)yes service receiver has to discharge his part of liabiliy

2)only exception is in respect of advocate services

if advocate is providing services less than 10 lakhs you dont need to pay reversecharge service tax ..

same exemption was not available in case of other services

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Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2013 Can you clarify more, please...
Suppose Business Entity is services receiving more than one Advocates and Total Amount is less than 10 lacs, THEN NO NEED TO PAY SERVICE TAX?

Ganeshbabu K

Ganeshbabu K (Expert)
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29 July 2013 suppose you have received an invoice from individual advocate(please note not firm of advocates or company of advocates)you need to pay 100% service tax under service charge

if suppose such advocate total services provided in previous year not exceeds 10 lakhs then reversecharge not applicable and you dont need to pay service tax under reversecharge

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Ganeshbabu K

Ganeshbabu K (Expert)
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30 July 2013 Sorry that 10 lakhs condition is on service receiver...which is business entity

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2013 Thanks a lot Sir.
But is 10 lacs exemption is allowed for Service Receiver?

Please also provide me reference for the full clearance...

Ganeshbabu K

Ganeshbabu K (Expert)
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30 July 2013 Sl No 6 (b) (iii) of Notification No.25/2012 dated 20.06.2012

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Querist : Anonymous