Professional fees of lawyer firm and service recepit under

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2014 Has service tax liability on service receipt in below case ?

sole proprietor business whose falls under audit and received the service from the Lawyer firm for Rs 9.25 Lakhs for f.y.13-14 and it is estimated for f.y.14-15 is Rs.8 Lakhs.

1. pl guide on service taxbility and to whom is liable for payment of service tax for the both year ?

2. if the amount of the f.y.is rs .4.5 lakhs for the f.y.2013-14 and 1 lakhs for the f.y.2014-15 , what is chargability of service tax ? whether it falls in service tax payable? by whom ?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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01 December 2014 As per Notification 25/2012 dated 20.06.2012 Services provided by Services provided by- an individual as an advocate or a partnership firm of advocates by way of legal services to,-
(i) an advocate or partnership firm of advocates providing legal services ;
(ii) any person other than a business entity; or
(iii) a business entity with a turnover up to rupees ten lakh in the preceding financial year;
are exempt from Service Tax.

Further Services receiver will liable to pay service tax if gross turnover exceeds rs. 10 lacs from preceding financial year

gbalakrishnan

gbalakrishnan (Expert)
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01 December 2014 lawyers are not to pay any service tax

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Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2014 kindly elaborate the definition of gross turn over , what does it include ?
is purchase also include?

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2014 as per your notification reference it means sole proprietor is liable to pay service tax even though he is received the services of worth rs 10000 /- or less .Because sole proprietor is under tax audit last three years .

is it correctly interpreted?

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2014 pl suggest your views.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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02 December 2014 Yes sole proprietor comes under the definition of person referred to the 65B(37) of the finance act, 1994. As far Service Tax is concerned if he had a 10 lacs or more turnover in last financial year, he will be liable to pay service tax on all service received from Lawyers and Advocates