Legal services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2013 Hi ,

A person charged to our company 75000/- for his legal services bt didn't charge any service tax. he told us to pay the service tax from hi sside to the govt .

can anyone help me for this ....how to pay service tax & what would be the amount of tds ? tds will charged on 75000/ or after adding srevice tax & wat is percentage of tds

its urgent

CA Neha Chauhan

CA Neha Chauhan (Expert)
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11 March 2013 you have to pay servicetax under reverse charge mechanism at the 12.36% rate and you have to filed the return for the same...for the TDS, you have to deduct TDS on 75000/- at 10% as Legal Service is a part of Professional services...

Regards,
Neha Chauhan

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2013 TDS will be charged on 75000+service tax or only 75000?

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Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2013 and what is reverse charge Machanism?

CA Neha Chauhan

CA Neha Chauhan (Expert)
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11 March 2013 TDS should be on 75000,
Under this scheme, service tax is payable by service recipient instead of service provider . Under this charge service receiver have to register himself under service tax . Further service receiver can not claim general exemption limit of 10 Lakh rupees.