Service tax on advocate under reverse charge

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2012 As per Notification No. 25/2012-Service Tax, a business entity with a turnover abovee rupees ten lakh in the preceding
financial year; have to pay service tax on reverse charge system.

But what is the definition of "Turnover" ?

Is related to turnover of "Services" only or not?

CA.Sangam Aggarwal

CA.Sangam Aggarwal (Expert)

12 October 2012 In case of reverse charge the benefit of Rs. 10 lakhs exemption is not allowed. In case of reverse charge even the billing of Rs. 100 liable for Service tax.

This provisions are applicable before coming negitive list. So thereafter there is no change in above said provisions.

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2012 please read my query with following amendment:-

that said notification related to advocate.

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)

12 October 2012 As turnover has not been defined , considereing the legislature intent to exempt service tax on such services provided to SME/s it appears that it means the total turnover of that business entity and not only taxable service turnover.

Hope this would settle the issue....

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