All you aware that, there is exemption to those service recepient whose taxable turn over is less than 10 Lakhs in the preceeding year, those are not laible to pay service tax under reverse charge mechanism on legal services received.
My question is, in the current year my taxable turnover is expected to exceed 10 Lakhs, in this case shall I pay service tax under reverse charges on legal services received in the current year or not.
Pls. help me.
NO you would not be liable to pay service tax under reverse charge mechanism since your turnover of the previous year did not exceed 10 lakhs.
No exemption limit for paying service tax under reverse charge system. Any business entity located in taxable tarritory will pay service.
Agrre with the above...
Yes , you can avail cenvat credit
The below 18 services are eligible for input tax credit
1) Repairs and maintainence
2) Advertisement/ sales promotion
3) Legal charges
4) Accounting
5) Auditing
6) Inward Transportation
7) Out ward transportation (upto place of removal)
8) Business exhibition
9) Security services
10) Shares Registry
11) Credit Rating
12) Computer Networking
13) Coaching & Training
14) Recruitment and Quality Controll
15) Market reasearch
16) Storage upto place of removal
17) Procurement of Inputs
18) Financing services
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