Reverse charge of advocate

This query is : Resolved

Suman Gurung (Querist)
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18 September 2014 I would like to know, in case of reverse charge mechanism of advocate services, if service receiver(company) has less than 10 lakh income & not registered under service tax then will the receiver liable to pay reverse charge of service tax?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 September 2014 Yes company need to obtain Service Tax Registration and pay service tax under reverse charge.

Suman Gurung

Suman Gurung (Querist)
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18 September 2014 Is there any new notification regarding benefit of 10 lakh for service receiver incase of reverse charge of advocates only.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 September 2014 No, Rs 10 lac exemption limit is for service provider not service receiver.

Suman Gurung

Suman Gurung (Querist)
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18 September 2014 service receiver as a provider in other service has less than 10 lakh income so not registered in service tax, is there any such new notification only for advocate case

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 September 2014 A service receiver to whom reverse charge is applicable has to obtain registration and pay service tax thereon under reverse charge.

For details see link below:

http://www.simpletaxindia.net/2013/12/reverse-charge-mechanism-under-service.html