Service tax applicability
This query is : Resolved
07 January 2013
Dear All,
1. The mega exemption notification exempts the services provided by an individual advocate or a firm of advocates to a business entity with a turnover upto Rs. 10lakhs in preceding financial year (Item No. 6(b)).
2. However the Reverse Charge Notification (Notification No. 30/2012-ST dt. 20.06.2012) notifies reverse charge mechanism to be followed for services provided by an individual advocate or a firm of advocates to any business entity located in taxable territory.
My Query is if an individual advocate / firm of advocates provides services to a business entity in a taxable territory having turnover less than Rs. 10 lakhs in preceding financial year, is the business entity liable to pay service tax as per reverse charge mechanism or are such services exempt from service tax as per Para '1' above?
Thanking in advance
1. The mega exemption notification exempts the services provided by an individual advocate or a firm of advocates to a business entity with a turnover upto Rs. 10lakhs in preceding financial year (Item No. 6(b)).
2. However the Reverse Charge Notification (Notification No. 30/2012-ST dt. 20.06.2012) notifies reverse charge mechanism to be followed for services provided by an individual advocate or a firm of advocates to any business entity located in taxable territory.
My Query is if an individual advocate / firm of advocates provides services to a business entity in a taxable territory having turnover less than Rs. 10 lakhs in preceding financial year, is the business entity liable to pay service tax as per reverse charge mechanism or are such services exempt from service tax as per Para '1' above?
Thanking in advance
08 January 2013
No only taxable services are subjected to reverse charge... Pl refer to start of notif No 25....
Hope this would settle the issue....
Hope this would settle the issue....
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Gift of mutual fund units to daughter
- Under construction property in ITR
- PPF interest-As Exempt Income disclosure
- Reporting of STCG on Property in ITR
- Upload Level ValidationITR3Category of Defect B/D
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Building tax payment deduction in rental Income
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
