TMI BlogService Tax on Legal Services on RCMX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, A Company is engaged in trading activities and the turnover from trading in goods is more than 10 Lacs. The Company does not provide any service. Whether, the company shall be liable to pay service tax on Reverse Charge Mechanism on Legal Services received by it. Kindly opine. Thank You. - Reply By Pradeep Khatri - The Reply = There is no exemption to the company which is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceiving the services under RCM. Service tax will be payable under RCM under LEGAL Services by the Trading company provided such services were provided by the LLP, Firm, HUF etc. - Reply By Bhuwan Bhatt - The Reply = in RCM there is no threshold limit for the service receiver, if he is a company, he has to pay his portion of service tax, based on the taxable services received by him. Regards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BDB - Reply By Praveen Mittal - The Reply = Threshold limit of Rs.10L is to be checked in case of taxable output service only and not for paying service tax under reverse charge mechanism. Where an Individual Advocate or Firm of Advocates provides for legal services to any business entity , service tax is required to be paid by such business entity. Following tow points are importa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt here to note: - 1. Business entity can be Individual, Partnership Firm or Company; 2. Such Business entity should be located in the taxable territory only - Reply By Shyam Naik - The Reply = Dear Experts, Kindly refer to para 6(b)(iii) of notification no. 25/2012-ST dated 20/06/2012. In terms of the said para services provided in respect of Legal Services to a business en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tity with a turnove r up to Rs. 10 Lacs in the preceding financial year is exempt. Whether the term turn over would cover turnover of output services only or it would cover turnover from trading activities as well? The service receiver in the instant case is a company engaged in trading only and the turnover in the preceding financial year exceeds Rs. 10 Lacs. . Kindly opine and oblige. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thank You. - Reply By Bhuwan Bhatt - The Reply = 6, Services provided by -(b) an individual as an advocate or a partnership firm of advocates by way of legal services to,- (ii) a business entity with a turnover up to rupees ten lakh in the preceding financial year Turnover includes gross sales done by a company - Reply By Mukesh Shah - The Reply = Dear Shyam, Trading of goods is ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... empted service ( Section 66D (e)) , So it gets included in turnover for the question under consideration. - Service Tax on Legal Services on RCM - Query Started By: - Shyam Naik Dated:- 18-8-2013 Service Tax - Got 6 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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