Dear All,
Advocate has raised a bill of RS 35000 which includes 2000/- for Misc Expense. The amount of Misc Exp is separately shown in the invoice. Do my company need to deposit service tax on 35000/- or 33000/-.
Thanks in advance.!!
Menu
Reverse charge- legal service
Replies (4)
Service tax is on service provided by advocate. So it shall be Rs.33000 only. Misc Exp shall not include any professional charges & shall be pure reimbursement.
Dear Priyanka, You should pay service tax on Rs. 35,000/- which is the 'gross amount charged' by service provider (Advocate) as per section 67 read with Rule 5(1) of Valuation Rules, 2006. What proof do you have that the Misc. Expenses is towards the claim of actual expenses by the Advocate? Suppose, in the same bill, the Misc. Exp. is shown as Rs. 10,000/- then will you pay service tax on Rs. 25,000/-? The manner of billing cannot alter the legal position.
Note: Rule 5(1) has been held ultra vires section 67 by the Hon'le Delhi High Court in the case of Intercontinental Consultants but the matter is pending before the Honb'le Supreme Court awaiting it's finality.
Agree with manoj.Service tax should be on whole 35000.
You should deposit service tax on 35000 only.....35000 12.36% 100% ..... code is 00440080
Recent Threads
- Exports against INR PO payable by Domestic Company
- Which websites are best for government exam prepar
- TDS on maturity payment of LIC of india
- ITR2 Gold ETF short and long term
- Query under faceless assessment
- Purchase of business
- Refund of ITC for advance paid to overseas supplie
- Clubbing query (when gifts given to multiple fami
- Transfer Pricing Audit Upload Form 3CEB - Income T
- Only a Few Pages Indexed by Google Despite Sitemap
Related Threads
CAclubindia
