Joint charge/reverse charge mechanism

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2013 Sir,
Under reverse charge/joint charge mechanism thresh hold limit exemption of 10 lakh is not available to the service recipient. Is the limit exemption available to service provider?
If a lawyer provide service to a company and companies turnover is less than 10 lakh is the company liable to pay ST?
What if the service recipient is a co-operative bank.

Ganeshbabu K

Ganeshbabu K (Expert)
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16 August 2013 1)In case the service provider is availing exemption owing to turnover b eing less than Rs. 10 lakhs then he shall not be obliged to pay any tax.

2)However the service recipient cannot avail SSI exemption while discharging servcie tax liability under reverse charge in terms of Notification No. 33/2012- ST dated 20-06-2012.

3)yes, if service receiver (business entity) turnover during previous financial year is less than 10 lakhs not required to pay service tax reverse charge payment for advocate service

4)yes, cooperative bank also business entity in my opinion

“Business entity” means any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession

Thanks & regards
Ganesh babu k

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2013 "business entity" and "body corporate" which is applicable in this context. Can you clarify

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Ganeshbabu K

Ganeshbabu K (Expert)
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16 August 2013 service receiver should be Business entity for advocate service for remaining services it should be business entity registered as body corporate