Service tax on professional fees

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NK1976

NK1976 (Querist)
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06 June 2017 Dear Expert,

We are the Pvt Ltd Company and in FY 2017-18 the company takes opinion from advocate. Advocate send the BIll for Rs.40000/- and we deduct TDS Rs.4000/- balance pay to advocate. The advocate send the bill Rs.40000/- without service Tax. Now my query is we are liable for payment of service tax & what is the rate of Service tax on advocate fees & also advice Service tax return Q1 of FY 2017-18.

Please provide your valuable suggestion in above matters.

Thanks.

Nischit Sanghavi

Nischit Sanghavi (Expert)
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06 June 2017 When services received from Advocate then RCM will be applicable. So in this case company is liable to pay ST @ 15% Company has to deposit tax by 6 of the next month need to file return half yearly

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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06 June 2017 Service tax Applicable under RCM@ 15% , other than Company payment to be paid quarterly by 6th of July for company 6 th of subsequent month.

Cenvat credit: If business entity pays service tax under reverse charge, it can take cenvat credit for it and utilize it for payment of service tax and excise.

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NK1976

NK1976 (Querist)
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08 June 2017 For Payment of Service Tax -- in Challan Accounting code for legal fees & SBC & KKC.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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08 June 2017 Legal consultancy services 00440480
SBC. 00441493
KKC. 00441509

Nischit Sanghavi

Nischit Sanghavi (Expert)
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26 June 2017 Service tax is applicable as per reverse charge mechanism. Company has to pay ST @ 15% in the next month by 6th day online. For Q1 ST return date is 15 August 2017. Instead of half year Quarterly return is required to file due to application of GST