Tag: reverse charge mechanism

GST ArticlePre-GST

Service Tax payable under reverse charge when reimbursable expense incurred by distributor on providing service on behalf of taxable person

byCA Bimal Jain

The CESTAT, Chandigarh in the case of M/s. Maruti Suzuki India Ltd. partly allowed the appeal filed by setting aside the penalty and confirming the demand of tax, thereby holding that, Service Tax is payable under reverse charge when reimbursable expense incurred by distributor on providing service on behalf of the taxable person for business purpose under Business Auxiliary Services.

GST ArticleHigh Court

Service tax leviable on services rendered by the Advocate and Senior Advocate under Reverse Charge

byCA Bimal Jain

The Hon’ble Karnataka High Court in the case of Prashanth Sreedhar Shenoi allowed the writ petition and held that, the services of legal professionals consisting of partnership firm of Advocates or an individual Advocate other than a Senior Advocate is exempt from levy of service tax to an advocate or partnership firm of advocates providing legal services to any person other than a business entity or a business entity with a turnover upto ten lakh rupees in the preceding financial year.