Service tax applicability
This query is : Resolved
Dhruv Gaglani
(Querist)
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
MOHAMMAD SALIM
(Expert)
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....
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