Liability under Reverse Charge for legal services obtained from foreign Lawyer
Serial No.2 of Table contained in Notification No.13/2017-Central Tax (Rate) requires any business entity located in taxable territory to pay GST on reverse charge basis for legal services supplied by an individual advocate including a senior advocate.
Serial No.45(b) of Table contained in Notification No.12/2017-Central Tax (Rate) exempts services provided by a partnership firm of advocates or an individual as an advocate, by way of legal services to a business entity with an aggregate turnover up to twenty lakh rupees (ten lakh rupees in the case of special category states) in the preceding financial year.
Whether tax under reverse charge is payable by registered person,
- who has taken registration in the current year due to turnover exceeding 20 lakh,
- on legal services obtained from foreign Lawyer for the purpose of business
- if registered person's aggregate turnover in the preceding financial year was less than 10 lakhs and thus not registered during the last year. ?