Summary: Taxation

Read the summary and the most important questions on Taxation

• 1 RCM and CL

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• What is the condition for RCM to be applicable in the legal services sector?

  RCM is applicable if all the following conditions are fulfilled:
  

  • Only if legal services supplied by advocate.
  • Services must be supplied by Individual Advocate/Senior Advocate firm of Advocate.
  • Service is supplied to business entity.

• What is the tax status for residential property used as a residence and given to an unregistered recipient?

  Exempt

• What is the forward charge condition in the legal services sector?

  Forward Charge is in any of the conditions if RCM is not fulfilled:
  

  • All other services supplied by Advocate.
  • Legal services supplied by Advocate company, CA/CS/CMA, or other consultant.

• What is the tax status for residential property used for commercial purposes and given to a registered recipient?

  Taxable under Reverse Charge

• What services are exempt from forward charge or RCM in the legal services sector?

  Exemptions (No FC/RCM):
  

  • Services supplied to B.E. having Agg. T/O below threshold in P.F.Y.
  • Non-business entity e.g. CG/SG/UT/Govt. Entity.

• What is the tax status for commercial property used for commercial purposes and given to any person?

  Taxable under Forward Charge

• Who is liable to pay tax when services by Arbitral Tribunal are provided to a business entity in a taxable territory?

  Any business entity located in the taxable territory is liable to pay tax.

• What does Section 9(3) of the Construction Service Sector pertain to?

  Transfer of development rights or Floor Space Index (FSI) by any person to promoter for construction of a project

• What services are supplied by the government under Part 2 (exception to entry 5)?

  Following services supplied by govt. I.A.:
  

  • Services by dept. of post & Indian Railways.
  • Services in relation to vessel or Aircraft within or outside the port or airport.
  • Transportation of goods or passenger.

• What is the condition for the long-term lease of land in the Construction Service Sector?

  Long term lease of land (30 years or more) by any person to promoter against consideration in the form of upfront amount for construction of a project