Reverse charge
This query is : Resolved
09 May 2013
INDIVIDUAL ADVOCATE TO CORPORATE COVER UNDER REVERSE CHARGE AND SERVICE RECEIPT IS >10L. NOW HE IS PROVIDING RENTING SERVICES OF 6L P.A WHETHER HE IS LIABLE TO PAY SERVICE TAX
09 May 2013
good situation
now 1st of all as per concept
proviso of para 1 of exemption 33/2012 (SSP exemption) does not allow reverse charge services as exempted for 10L limits, hence taxable, though tax to be paid by SR.
Hence, if 10 lakh crossed and then providing 6L, it is taxable.
but why i said it good, because if he has charged rent 1st and then consultancy then it could be exempted.
bcoz on 6 lakh = exempt as under limit of 10Lakhs
on balance = reverse charge.
this is because as per the new explanation of AGGREGATE VALUE = aggregate value” means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year.
hence if 1st charged advocate services then exemption limit over and tax payable on 6 lakhs
this is according to my knowledge, otehr experts may differ on this point
now 1st of all as per concept
proviso of para 1 of exemption 33/2012 (SSP exemption) does not allow reverse charge services as exempted for 10L limits, hence taxable, though tax to be paid by SR.
Hence, if 10 lakh crossed and then providing 6L, it is taxable.
but why i said it good, because if he has charged rent 1st and then consultancy then it could be exempted.
bcoz on 6 lakh = exempt as under limit of 10Lakhs
on balance = reverse charge.
this is because as per the new explanation of AGGREGATE VALUE = aggregate value” means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year.
hence if 1st charged advocate services then exemption limit over and tax payable on 6 lakhs
this is according to my knowledge, otehr experts may differ on this point
09 May 2013
thx. In this case already crossed 10L from advocate services till 31/03/2013.
Then what for the next year i.e. 1/4/2013 onwards.
Then what for the next year i.e. 1/4/2013 onwards.
09 May 2013
from next year no exemption for 10lakhs.
pay tax since rs 1 even
pay tax since rs 1 even
10 May 2013
Next year Rs.10 lacs exemption is not available once your taxable turnover crosses 10 lacs in the last accounting year.
10 May 2013
thx, but my question is if like advocate, he is cover under reverse charge and service recipient is paying service tax and amount is >10L till 2013. Now from 01/04/2013 with advocate services he is also providing renting services of 6 L P.A. whether he is liable for service tax on renting service. On advocate/legal service recipient continue paying service tax
10 May 2013
Yes dear, we both understood your query, even in my earlier i mentioned the same with reason that even if reverse charge, and the client is paying the tax, still the provider covers the limit of 10l, because for 10lakhs what we have to check is the amount of services provided, doesnt matter who depostited it.
proviso of para 1 of the notification justifies it.
as the limit crossed last year, there will be tax on rent services.
because 10 lakh is total exemption for all the services.
ca vikas acharya
7503592642
cavikasacharya@gmail.com
proviso of para 1 of the notification justifies it.
as the limit crossed last year, there will be tax on rent services.
because 10 lakh is total exemption for all the services.
ca vikas acharya
7503592642
cavikasacharya@gmail.com
10 May 2013
notification no 30/2012 ?
11 May 2013
its notification no. 33/2012
i mentioned above too.
i mentioned above too.
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