Reverse charge mechanism application

This query is : Resolved

Brij katara (Querist)
Follow

27 June 2012 Abn individual advocate is rendering services to a body corporate. This advocate is not required to get registered under service tax rules. whether body corporate is required to pay setrvice tax according to reverse charge mechanism as the service provider is exempt.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

27 June 2012 1. Under reverse charge mechanism, the exemption available to the service provider is NOT available to the service recipient.

2. Accordingly, the corporate entity shall be liable to pay service tax in this case.

However, if the gross receipts or turnover of the service RECIPIENT (corporate entity) did not exceed Rs. 10 lakhs in the previous year, then service tax is exempt.

Message likes : 1 times

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

27 June 2012 Yes, individual advocate is not responsible for paying service tax. Under reverse charge mechanism, the liability of paying service tax on such bills is shifted to corporate entity, being the service receiver. There are ten such services included in the current bill which comes into effect from 01.07.2012, the service receiver has to pay either full or part % on such services.

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok