Dear Sir,
I am working in a Pvt. Ltd. Company, my company organise conference for lawyers world wide, recently we have charged service from a lawyer(Indian) to attend our abroad conference, but he is saying that service tax not applicable on him, but we have give ascuse to him that you are indian entity so we have charged service tax with you.
Please suggest service tax applicabe or not
Thanks
Sarvesh
The answer lies in RCM mechanism where in respect of this service the recipient of the services has to deduct the applicable service tax and deposit service tax in respect of legal services. You may refer to host of notifications read with S.68(2), Rule 2(1)(d) of S.Tax Rules,1994 and original Ntf.36/2004 made effective from 1/1/2005 read with 30/2012 and others relevant ones. You have to dwell on the subject matter from this angle.
| Originally posted by : SARVESH KUMAR | ||
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Dear Sir, I am working in a Pvt. Ltd. Company, my company organise conference for lawyers world wide, recently we have charged service from a lawyer(Indian) to attend our abroad conference, but he is saying that service tax not applicable on him, but we have give ascuse to him that you are indian entity so we have charged service tax with you. Please suggest service tax applicabe or not Thanks Sarvesh |
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as per rule 6 of place of provision of service, service provided in non taxable territory, and not liable to ST
Visit S66B charging section and S68(2) as the activity has to be understood under it taking cue of negative list provided wrt taxable territories. Even R.3(1),(ii) of Export Services Rules, 2005 get you out of tax net being export service wholly or partly performed outside India but need earn convertible forex. Pl.visit R.3 of Services provided from outside India & Received in India Rule, 2006 r/w R.2(1)(d)(Iv) further read with POP Rules 2012 ntd.28/2012 dot.1/7/12- 6,7 of it. Further BES ntf.02/2011ST dt.1/3/2011 clarified amply. No chargeability.
The Place of provision of services rule 6 sets out that for events the place of event being outside India - not liable. However Rule 8 which covers Rule 6 is important which specifies that where the service provider and reciver are in India the place of provision shall be the location of the recipeint. You need tocharge + the lawyer needs to pay the ST to you.
When the total estimation of taxable service (or the billing of the services provided) surpasses 9 lakhs amid whenever of the financial year, it is compulsory for the service provider to acquire the service tax registration number.
The supplier ought to charge service tax from the recipient when the total estimation of assessable administrations surpasses 10 needs.
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