08 January 2014
we have received a advocate bill Amt.10000/- Advocate charged 8000/-professional fee & 2000/- reimbursement of expenses bill he paid to govt.on behalf of our company.
can we paid service tax 100% under RCM on whole bill amt. 10000/-
service tax amt.is 10000@12.36% = 1236 is correct or not...
08 January 2014
If advocate had given single bill of 10,000/- for both fee and expenses. Then the service receiver is liable to pay ST on total amount. If the advocate given two bills separately for fee and expenses then the service receiver is liable to pay service tax only on fees.
There is no need to pay ST on expenses if the lawyer given separate bill.
09 January 2014
Yes, the consultant has raised a single bill but within that single separately mentioned as Item 1) Professional Fees for (8000/)... and Item 2) re-imbursement of expenses(2000/) towards .... Does that mean I only need to pay service tax on Professional Fees Rs. 8000/-, Though I'm paying ST.the full Rs. 10000/- to govt.
CAclubindia
