Service Tax liability under Reverse Charge Mechanism for Advocate Service

[Mehul Pandya]

Greetings

In case of Services Provided by Advocate, (As per Notification No. 25/2012 dated 20-06-2012 serial No.6 (B)(iii), there is mentioned that a business entity with a turnover up to rupees ten lakhs in the preceding financial year;) In that context my query is that in case of Manufacturing partnership firm having turnover say 15 lakhs from the Salt or any other trading activity. He is not service provider. In this case if he receives service from the advocate, will he liable to pay service tax ?? Pl. guide us for this issue..

AI Summary

Reverse charge for advocate services applies where a business exceeds the prescribed turnover threshold; turnover includes all receipts.
Reverse charge applies to advocate services received by a business entity whose preceding-year turnover exceeds the exemption threshold; a body corporate is liable under reverse charge regardless. "Turnover" is to be read as the entity's total turnover from all sources (goods and services), not merely service turnover, for determining availability of the exemption.