Service tax registration & filing of return

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2012 Dear Sir

We are a partnership firm providing legal consultancy services. We have started the profession in FY 2012-13. We will raise our first bill in July 2012.My qureies are

1)Do we need to take service tax registration number as From July 2012 the liablity of service tax is shifted to service receiver in our line of service.

2) Do we need to file service tax return if we take service tax registration number

RENGARAJ R.K

RENGARAJ R.K (Expert)
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17 July 2012 So far there is no clarity about the service providers taking RC under Reverse charge mechanism. The finance ministry guide note says that only service receiver has to apply RC even if his turnover is below 10 lacs if he avails the services of 10 specified services under RCM including advocate services.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 July 2012 My view.
As per notification No:(Notification 25/2012 – ST dated 20/6/12), for exempted list known as mega exemption:
Legal service provided by the partnership form not attracting service tax unless they provide services to business entity.

Business entity as a receiver of services need to pay service tax on the particular legal services such called as Reverse charge. in case receiver has taxable services more than Rs.10 lakhs. as receiver of service, need to register under service tax as Service receipent category and pay service tax, hence there is no registration requirement for Legal firms

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