Service tax reverse charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2013 Dear Sir,

We have a proprietorship firm. we made a chq payment to advocate. he is not raised any service bill including service tax. so in this case, we are liable for paid the service tax reverse charges.

so pls let me confirm that the reverse charges applicable only on corporate units or as well as individual and proprietorship.

Regards

Ashok
+91-9911724322

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
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16 October 2013 Service provided by Advocate is exempt by Notification 25/2012 except where it is payable under reverse charge mechanism. In your case it may be applicable if turnover of your business in preceding FY was 10 lakhs or more since service provided to business entity is taxable under reverse charge.

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2013 thnx sir, but i will ask a question you to if the turnover of business in preceding fy year was Rs. 10 lakhs or more than we are liable to pay the reverse charge. so just clear one more thing that turnover means, only service provided turnover or overall business turn over (inclusive all kind of sales part) for example :
sales account (2012-13): 7.57 Crore
job work service (2012-13): 9.5 Lac

so which figure shall we assume the business turnover in the previous year to see the reverse charges payable.

kindly do the needful to answered this also

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
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17 October 2013 It would include both turnover because Business entity being a Recipient has to see total turnover, not only turnover relating to services as it is not necessary to recipient to have service turnover for reverse charges

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