There is C.A currently working in a pvt Ltd Co. wants to apply for COP. However he will be now taking Professional Fees instead of Salary from the company.But the problem is its Company will considered his fees as inclusive of Service Tax & will deduct it considering Reverse Charge Rule.
Need help whether Reverse Charge is applicable in Professional Fees. & if Yes, What if He Applies for Service Tax No. & Gave a declaration to the company that his total Income is Less Than 10Lacs.
Reverse charge mechanics of service tax is not applicable for professional fees charged by CA/CS/ICWA. If a company received the professional service from CA, Company is not liable to deduct and pay the service tax on behalf of professional.
CAclubindia
