Urgent query - definition of turnover limit - reverse charge

Notification No. 25/2012 dated 20.06.2012 exempts "service provided by an individual as an advocate or a partnership firm of advocates by way of legal services to a business entity with a turnover up to rupees ten lakh in the preceding financial year".

Here turnvoer of service receiver is to be taken. If turnover of business entity exceeds rs 10 laksh then it would be liable to service tax under reverse charge.

Turnover includes all turnover exempt, taxable and including trading turnover.

Under Reverse Charge no turnover limit is presribed.Otherwise nirav is correct. 

( Jayam Ramesh K C) 

Dear Sir,

In legal service there is an exception where if the turnover of business entity(service receiver) is less than Rs 10 lakh then there is no need to pay service tax under reverse charge.

You can refer Notification No. 25/2012-ST

Even I have read the  Notification referred by Nirav. So I agree with Nirav.

but Turnover is not clearly defined any where in the act, rules. Can anyone help for definition of turnover please?

The basic intention to exempt upto turnover of Rs 10 lakhs is that various small dealers, service providers do not come under service tax ambit because of receiving a one time legal service.

Hence, according to me turnover would include all income of dealer/service providers even if it is exempt.

Considering that reverse charge is not only applicable to service providers but couldbe liable for a business entity receiving services from an advocate- the tornover should as Nirav says be considered as top line and not restricted. 

Small businesses have been sought to be kept out. It wouldhave beenideal for all reverse/ joint charge this was done but ALAS!!

By virtue of Notification No. 33/2012-ST, SSI exemption is not availabe to services received under reverse charge machanism except legal services. 

Regards,

JMS

advance received against flat to be considered as turnover ???