11 October 2012
By way of Notification No. 25/2012 – ST dtd. 20.06.2012, the Government has exempted service by an individual advocate or a partnership firm of advocates by way of legal services to, -
i) an advocate or partnership firm of advocates providing legal services;
ii) any person other than a business entity; or
iii) a business entity with a turnover upto Rs. 10 Lakhs in the preceding financial year.
“Legal service” is defined to mean any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority.
“Business entity” is defined to mean any person ordinarily carrying out any activity relating to industry, commerce or any other business.
My query is that turnover of "business entity" in what respect?
turnover of rs. 10 lacs means releated to "services" or other mean?
11 October 2012
Business entity is specified because advocate services used for business then only they are taxable if they are not provided to business entity like in trust, individual etc. Further, the floor of turnover of Rs. 10 lakhs is given in order to exclude very small entities to pay service tax.
11 October 2012
The notification does not define "turnover in the preceding financial year" . Notification No 33/ 2012-ST dated 20-06-2012 exempts provider of service from payment of service tax unto aggregate value of taxable service of rs 10 lacs subject to compliance of conditions therein. It therefore appears that turnover of taxable service of business entity in the preceding financial year shall be considered for purpose of granting exemption here....
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