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Rcm on legal services

647 views 2 replies

nagasrinivasu

accounts assistant

46 Points Joined May 2009

Dear Members,

As per the Mega exemption notification 25/2012 dt:20-06-2012,

Services provided by an individual as an advocate or a partnership firm of advocates by way of legal services to a business entity with a turnover up to rupees ten lakh in the preceding financial year is exempt from service tax,

But we have paid the service Tax (RCM on Advocate ) services even though company turnover is "0"(Zero), Here Can we adjust the amount with any other service tax (RCM ) Payment. Or Can we adjust in revised return or can we claim refund.

Thanking You.

Replies (2)

MAYUR BIYANI

Assistant Manager-Taxation & Accounts

142 Points Joined April 2010

although u paid the service tax on the basis of RCM get the cenvat claim for the same while calculating the Next month service tax liabilty

Swadia

CA FINAL

38 Points Joined August 2012

Sir Adjustment of Service Tax Payment made under RCM for exempted service is not allowed in self assessment i.e. in service tax return because the same is error in interpreting applicabilty of exemption notification.