Reverse charge mechanism on legal consultancy
This query is : Resolved
Shivish Verma
(Querist)
25 January 2017
Shivish Verma
Sir My client is delhi based private limited company . its turnover in F y 2013-14 is less than Rs 10.00 lacs. they recieved legal service from advocate. shoud he pay service tax on RCM.
My point is, i have gone throungh notification no 26 & 30. 2012 which deal with mega exemption and RCM. and i have read some article and analysis on various tax related portals. some expert say that RCM on legal consultany is payable by business entity only when its turnover for last F y is more than 10.00 lacs now service tax dept is conducting scrutiny of my client company and they are raising a demand for RCM on legal conslutancy.
Pleas sugget me, should we pay RCM on legal service recieved. Does mega exemtion notification no 26, 2012 apply here and prevail over Notification no 30. 2012
Its urgent.
Sir My client is delhi based private limited company . its turnover in F y 2013-14 is less than Rs 10.00 lacs. they recieved legal service from advocate. shoud he pay service tax on RCM.
My point is, i have gone throungh notification no 26 & 30. 2012 which deal with mega exemption and RCM. and i have read some article and analysis on various tax related portals. some expert say that RCM on legal consultany is payable by business entity only when its turnover for last F y is more than 10.00 lacs now service tax dept is conducting scrutiny of my client company and they are raising a demand for RCM on legal conslutancy.
Pleas sugget me, should we pay RCM on legal service recieved. Does mega exemtion notification no 26, 2012 apply here and prevail over Notification no 30. 2012
Its urgent.
CA R SEETHARAMAN
(Expert)
25 January 2017
Not required to pay service tax under RCM as turnover is less than 10 lacs. Mega exemption notification prevail over Notification 30.
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Shivish Verma
(Querist)
25 January 2017
Thanks Sir
Shivish verma
Shivish verma
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