Reverse charge mechanism

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2014 I have query regarding Service tax on reverse charge mechanism. I am proprietor in the business of real estate. I have taken a services of advcotes/ firm of advocates regarding my business.
Do i need to service tax on the advocate fees i have paid to them?

If not , then what is the procedure to take refund back in such case?

Can i adjust this amount against any other service?

Thanks.

Ca Jai Prakash Agarwal

Ca Jai Prakash Agarwal (Expert)
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30 June 2014 Yes, service tax needs to be paid. You may take the amount to be paid as gross fee and can pay the service tax to the department and balance may be paid to the advocate

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2014 but i m proprietor. Is it applicable to me?

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Srinivas Reddy

Srinivas Reddy (Expert)
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01 July 2014 Ir-respect of status of the service receiver RCM will applicable when the service provider is advocate/firm of advocates if the service receiver turnover exceeds Rs.10 laksh in the preceding financial year.

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2014 but 10 lacs criteria is applicable to business entity and as per the definition in FA 1994 , business entity doesnot include Individual and proprietor.

Please clarify the same.
Thanks.