There is an exemption from the payment of gst on lawyer and advocate fees and law firm fees. Our chartered accountant is adamant that tds is required to be deducted on service tax component paid under reverse charge mechanism.
Now my query is we are liable for payment of service tax & what is the rate of service tax on advocate fees & also.
Service tax advocate fees. Legal services as per service tax rules is covered under reverse charge mechanism. Because only legal services provided by advocates or partnership firm of advocates are mentioned under rule 2(1)(d) of service tax rules, 1994, that's why reverse charge mechanism is applicable on legal services provided by advocates. It is pertinent to note that taxability of reimbursement of expenses depends on nature of expenses incurred for provision of services by advocates.
A person who provides taxable services exceeding a specified threshold is A business entity with a turnover up to rupees ten lakh in the preceding financial year. Also the ministry of finance should devise a mode by which the input of service tax paid by the other advocates on the service received by them from senior advocates is allowed.
9.1 taxability on reimbursement of expenses charged by advocates. Under article 279a of the indian constitution, the gst rate on legal fees for advocate services along with exemptions from the previous rule was finalized by the gst council. Service tax is imposed on prescribed services called “taxable services”.
1 lakhs and the ssi exemption will not be available to him because the value to. When one is crossing or likely to be crossing the basic limit of 10 lakh A person who provides taxable services exceeding a specified threshold is
If an individual senior advocate or law firm provided service to a business entity then the recipient (the client) would pay the service tax to the tax authorities on the consolidated bill of fees for the senior counsel and that of the law firm or solicitor. Civil suit filing charges & lawyer fees in chennai by civil advocate in chennai / 2 minutes of reading what will be the lawyers fees for filing a civil case in chennai, tamil nadu, india ?. Service tax is imposed on prescribed services called “taxable services”.
1 lakhs, then the total valuation of taxable service becomes rs. Advocates can provide services either as individual or as firms. Service tax is a consumption tax governed by the service tax act 2018 and its subsidiary legislation.
Also, since the services are exempt, the question of payment of service tax under partial reverse charge mechanism by the company should not arise. The effective date of the service tax act 2018 is 1 september 2018. 15 lakhs and the valuation of coaching services is rs.
Needless to say that, such persons (barring above eight categories) shall continue to pay service tax on accrual basis for the period 1.04.2012 to 30.06.2012. Cost accounting and financial management; Information technology and strategic management;
Mygst.mytax (gst & service tax experts) keshav r garg (b.com, ca, cs, isa (icai)) 3328, sector 27 d, chandigarh Legal services provided by advocates or partnership firms are exempt from service tax when provided to the followings: Civil suit filing charges & lawyer fees in chennai by civil advocate in chennai / 2 minutes of reading what will be the lawyers fees for filing a civil case in chennai, tamil nadu, india ?.
16 lakhs and the advocate will have to pay service tax on coaching service of rs. However, the existing dispensation regarding legal services provided by a firm of advocates or an advocate other than a senior advocate is being continued. This would certainly reduce the litigation cost.
Say, if the value of legal services which become taxable under above circumstance , though payable by the recipient is. Service tax consultant and project consultant, who are able to give advice or consultancy in law because of their experience in law, but not acting as an. If these kinds of expenses are in nature of ‘pure agent’ than there is.
Liability to pay service tax under reverse charge by a business entity of advocates: Services provided by the government. Ravi kumar somani (indirect taxes specialization) 02 february 2016.
Service tax is a consumption tax governed by the service tax act 2018 and its subsidiary legislation. Tds on service tax paid on reverse charge paid to advocates. Service tax in the above instances would be levied under forwarding charge.
As long as lawyers/advocates gross receipts/turnover is below 10 lakh, one is not required to register under service tax. However, in respect of services provided to business entities, with a turnover exceeding rupees ten lakh in the preceding financial year, tax is required to be paid on reverse charge by the business entities. The effective date of the service tax act 2018 is 1 september 2018.