Service tax on legal services
This query is : Resolved
27 August 2012
Please let me know what to do on following issue.
One of my client is a individual legal consultant. who has provided services in F.Y.. 2011-12 for Rs. 9,63,000/- and in that year legal services provided by individual not come under legal consultancy services.
now in a F.Y. 2012-13 they received payment of last year and this year more than Rs. 10,00,000/- and according to new rules of service tax now individual is also liable for service tax
They have also not taken registration for service tax as it was not taxable services in 2011-12.
Now what to do?
1) Whether he require for registration as in last year service provided by him increases Rs. 9,00,000 though it is not taxable.
2) How they have to pay service tax i.e. from the date 01.07.2012 they have to calculate Rs. 10,00,000 of receipts and when receipts exceeds Rs. 10,00,000 than they should pay service tax?
3) whether they have to collect service tax in bills?
4) In F.Y. 2012-13 its taxable turnover will not increases as his son also started consultancy as individual with his father so bill will get distributed.
One of my client is a individual legal consultant. who has provided services in F.Y.. 2011-12 for Rs. 9,63,000/- and in that year legal services provided by individual not come under legal consultancy services.
now in a F.Y. 2012-13 they received payment of last year and this year more than Rs. 10,00,000/- and according to new rules of service tax now individual is also liable for service tax
They have also not taken registration for service tax as it was not taxable services in 2011-12.
Now what to do?
1) Whether he require for registration as in last year service provided by him increases Rs. 9,00,000 though it is not taxable.
2) How they have to pay service tax i.e. from the date 01.07.2012 they have to calculate Rs. 10,00,000 of receipts and when receipts exceeds Rs. 10,00,000 than they should pay service tax?
3) whether they have to collect service tax in bills?
4) In F.Y. 2012-13 its taxable turnover will not increases as his son also started consultancy as individual with his father so bill will get distributed.
28 August 2012
Even w.e.f. 01.07.2012 the legal service provided by an individual advocate are exempted except where such service is provided to a business entity with an annual turnover exceeding Rs. 10 Lakh.
In the cases where service is provided to a business entity with turnover more than 10 lakh it is business entity who is liable to pay service tax under reverse charge mechanism and therefore your client does not require registration
sureshjain.nj@gmail.com
In the cases where service is provided to a business entity with turnover more than 10 lakh it is business entity who is liable to pay service tax under reverse charge mechanism and therefore your client does not require registration
sureshjain.nj@gmail.com
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