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Reimbursement of fees/out of pocket exps paid by advocates rcm applicability
Mr A is an Advocate. He has paid a govt filing fee of Rs.100,000/- , on behalf of Company B and the same is reimbursed by Company B to A as reimbursement expenses. Whether B has to pay service tax on fee under reverse charge method ?
Replies (1)
If the advocate acts as pure agent i.e.without charging any other extra consideration then RCM will not be applicable in this case.
If any consideration is received then service tax has to be paid under RCM by company B
Note:
1. Mr. A should not be senior advocate
2. company B's turnover should exceed 10 lakhs in preceding financial year
If any consideration is received then service tax has to be paid under RCM by company B
Note:
1. Mr. A should not be senior advocate
2. company B's turnover should exceed 10 lakhs in preceding financial year
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