Reverse charge in case of advocate services

Saurabh Maheshwari (B.com,ACA) (5923 Points)

17 October 2012  

Dear Forum Members, I have a query in relatio to services provided by Individual Advocates or by a Firm of Advocates :

Consider the follwing case:

 Ajay& Co. providing I.T Services have taken some legal consultyancy services from BS&Co.,(Advocate Firm), In view of ammnedments made in reverse charge obligations vide notification 30/2012 dated 20th June,2012....In case of Services provided by individual Advocate or by a firm of Advocates by way of legal services the liability to pay ST is of the receipient of the service. But in this case Ajay & Co.'s value of taxanle serevices in Previous FY 2011-12 was not more than Rs. 9lacs(i.e. Ajay & Co. was even not liable to register under ST Law)

So, please answer whether Ajay & Co. is liable to obtain registration and pay taxunder reverse chg. mechanism or entitled to exemption upto Rs. 10lacs.