Reverse charge applicablility on stpi

hii, STPI is receiving Services of an advocate.... My question is whether service tax under Reverse Charge Mechanism is applicable or not..???? Thanks and Regards CS Bikram Keshari Swar
Replies (6)

Yes, Service tax under RCM will be applicable

Reverse Charge is applicable on legal services provided by an advocate or firm of advocates to "Business Entity".

Business Entity is defined under section 65B(17) of the Finance Act, 1991, which means any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession.

If STPI qualifies the definition of Business Entity then service tax will be payable under reverse charge otherwise not.

Reverse Charge is applicable on legal services provided by an advocate or firm of advocates to "Business Entity".

Business Entity is defined under section 65B(17) of the Finance Act, 1991, which means any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession.

If STPI qualifies the definition of Business Entity then service tax will be payable under reverse charge otherwise not.

ST applicable + eligible for Cenvat credit on payment

yes service tax is applicable under RCM and cenvat can also be taken.

Yes agree above  with us

Ramanuj

 

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