Service Tax payment - Reverse charged mechanism

[vinay wakde]

The Individual Advocate is providing legal services to the company. Whether, the service recipient has to pay Service Tax on reversed charge method from 01.07.2012 onwards. Kindly give your valued clarification.

Regards,

 

VINAY

 

[Vijay Chitte]

Yes, If service receiver is Business entity and registered as body corporate, located in the taxable territory.

[YAGAY andSUN]

I do agree with Mr. Vijay's reply.

AI Summary

Reverse charge mechanism requires business recipients that are registered corporations in taxable territory to pay service tax on advocate services. Where the service recipient is a business entity that is a registered body corporate and is situated in the taxable territory, the obligation to discharge service tax shifts to the recipient under the reverse charge rules, so corporate recipients must account for service tax on legal services provided by individual advocates when the statutory reverse charge conditions are met.