here in India in Service Tax Act The Reverse charge provision is applicable for some services.
Section 68(2) makes provision for
reverse charge i.e.the service receiving company is liable to pay service tax.
There are some ratio in some percentage (%) for the liable to pay tax on service receiver and some percentage was liable to pay by service provider.
Service Tax Rates are as under
Service Tax Rate- 12 %
+Education Cess- 2 %
+Higher Education Cess- 0.1 %
Total Service Tax is - 12.36%
In reverse charge services for Advocates it was necessary to register under services tax on Income
after 10 Lakh..
After Registration it was not necessary to file a returns and the payment part is on service Receiver.
Service Receiver has to pay the Service Tax and claim for set off for service Tax Paid by him.
In Reverse Charge Service Category the effect for the Advocate and Advocate Firm is as under :-
Description of service | Service Provider | Service Receiver | Liability of service tax |
Legal Services of Advocate or Advocate Firms
|
Individual Advocate or Advocate Firms
|
Business Entity having turnover exceeding ` ten lakhs per annum, located in taxable territory
|
Entire tax payable by service receiver
|
No comments:
Post a Comment