11 October 2012
My client is a private limited company who is going to receive security services from a proprietorship firm. I had told them that if they receive security services from a proprietorship firm, they will have to deposit service tax as service recipient. But they are saying that if they pay aggregate amount not exceeding Rs. 75,000/-, they are exempted from Reverse Charge Mechanism. I wanted to know if they are correct.
11 October 2012
no there is no exemption limit under reverse charge. if a service is covered under reverse charge and even if payment of Rs 100 is made that would also be subjected to service tax...
CAclubindia
