Reverse charge in case of advocate services

Dear Forum Members, I have a query in relatio to services provided by Individual Advocates or by a Firm of Advocates :

Consider the follwing case:

 Ajay& Co. providing I.T Services have taken some legal consultyancy services from BS&Co.,(Advocate Firm), In view of ammnedments made in reverse charge obligations vide notification 30/2012 dated 20th June,2012....In case of Services provided by individual Advocate or by a firm of Advocates by way of legal services the liability to pay ST is of the receipient of the service. But in this case Ajay & Co.'s value of taxanle serevices in Previous FY 2011-12 was not more than Rs. 9lacs(i.e. Ajay & Co. was even not liable to register under ST Law)

So, please answer whether Ajay & Co. is liable to obtain registration and pay taxunder reverse chg. mechanism or entitled to exemption upto Rs. 10lacs.

Replies (1)

If legal service is provided to a business entity whose turnover in previous FY was less than 10L, then that provision of service is itself exempt under mega notificaton 25/2012.

Hence, when a service itself is exempt, question of payment of output tax by direct or reverse charge, by provider or receiver,do not crystalise.

Regards,

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
08 September 2026
Audit Executive

Thammana & Associates

Srikakulam

B.Com

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

K R Kiran Kumar & Associates

Bengaluru

CA Inter

View Details