TaxTMI 
TaxTMI 
2019 (1) TMI 1820
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....tration No. AAHCS7169QSD001 for legal consultancy services, etc. The appellant's primary business is development of properties for sale. 2. The appellant paid Service tax on reverse charge basis, in the F.Y. 2012-13 upon receiving legal consultancy services, even though the appellant was eligible for exemption under the Notification No. 25/2012-S.T. (at Sl. No. 6) which exempted a business entity from Service Tax, if the turnover in the previous financial year was equal to or less than 10 lakhs rupees. As per the appellant, his turnover for the F.Y. 2011-12 was Rs. 2.04 lakhs and for F.Y. 2012-13 was Rs. 6.78 lakhs which was below Rs. 10 lakhs, and he was eligible for exemption under Notification No. 25/2012-S.T. 3. Pursuant....
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....ing Authority did not give any finding in regards to Notification No. 25/2012, dated 20-6-2012, under which the appellant claimed the exemption. 7. The instant appeal is preferred against the Impugned Order dated 28-2-2014. The appellant has taken us through the Notification No. 25/2012-S.T. It is submitted that Serial No. 6 of the said notification exempts the services 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. 8. The Ld. Counsel for the appellant Sh. Puneet Agrawal submits that definition clause provided in the said notification, nowhere defines the term 'Turnover', neither....
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....nting Standards - 7. Para 5 of AS-29 states the following : 'The term turnover is used in relation to the source of revenue that arises from the principal revenue generating of an enterprise'. In case of a contractor the construction activity is its principal revenue generating activity. Hence the revenue recognized in the statement of profit and loss of a contractor in accordance with the principles laid down in AS-7, by whatever nomenclature described in the financial statements, is considered as 'turn-over.' 10. In light of the above, the appellant seeks to submit that the authorities below have erred in relying upon the definition provided in Companies Act, 1956, without any justification whatsoever. The appellant there....
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.... (b) an individual as an advocate or a partnership firm of advocates by way of legal services to, - (i) an advocate or partnership firm of advocates providing legal services ; (ii) any person other than a business entity; or (iii) a business entity with a turnover up to rupees ten lakh in the precedineg financial year; or (emphasis supplied) .... ...." 14. We find that the expression "turnover" is not defined in the Notification No. 25/2012-S.T. or in the Finance Act, 1994, and hence in order to interpret the meaning of the said term, in Serial No. 6 of Notification No. 25/2012-S.T., the common parlance meaning of t....
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....;The Hon'ble Supreme Court also held that for a more accurate meaning of the term turnover one can also look into the dictionary meanings or to the materials which are published by bodies of accountants. This is clear from Para 25 of the judgment : 25. So as to be more accurate about the word "turnover", one can either refer to dictionaries or to materials which are published by bodies of Accountants. The Institute of Chartered Accountants of India (hereinafter referred to as the 'ICAI') has published some material under the head "Guidance Note on Tax Audit Under Section 44AB of the Income tax Act". The said material has been published so as to guide the members of the ICAI. In our opinion, when a recognized body of Accountant....
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....r, the corresponding amount should be distinctly shown as a debit item in the profit and loss account. " 1. The aforestated meaning given by the ICAI clearly denotes that in normal accounting parlance the word "turnover" would mean "total sales" as explained hereinabove. The said sales would definitely not include the scrap material which is either to be deducted from the cost of raw material or is to be shown separately under a different head. We do not see any reason for not accepting the meaning of the term "turnover" given by a body of Accountants, which is having a statutory recognition. 17. Thus, as per the law declared by the Supreme Court, turnover means the aggregate amount for which sales are effected or serv....