A company is receiving legal advisory services from a advocate firm during th FY 2015-16 and the company has Nil turnover during the year. Whether the company receiving service is liable to pay service tax under RCM?
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Applicability of rcm
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Hi,
When a company is liable to pay service tax under RCM, it is required to register itselfself with service tax department and pay the tax. No matter tax amount is Rs. 100 or Rs. 1,00,000. This provision is really hardship for service receiver because sometime service provider is not liable to pay service tax due to lower turnover but service receiver is liable to pay service tax due to applicability of RCM.
Regards
Bharath
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