Name of Service

Service Provider

Service Receiver who deposits service tax

Legal Service

Individual Advocate Or Firm of Advocate Or Arbitrary tribunal

Any business entity Having turnover

>10 lacs in last financial year

 

Service Tax Applicability Till 31.3.2016

Service Provided to Non Business

Service Tax was exempt

 

Service Provided to Business

If turnover of business upto 10 lacs in last year

Service Tax was exempt

 

If turnover of business > 10 lacs in last year

Service tax is applicable.

Also reverse charge is applicable and receiver (business pays service tax)

  

Service Tax on Advocates (Amendment -Summary of Notification 32/2016 ,33/2016 and 34/2016) - Concept of RCM (Reverse Charge and Partial Reverse  Charge)


Service tax from 1 April 2016 till June 5 2016

Concept of Senior Advocates  and  Normal Advocates was introduced

Senior Advocate

Other (Normal Advocates)

In this case,Normal Charge is Applicable

And

Service tax is to be deposited by Advocate

In this case,Reverse Charge is Applicable

And

Service tax is deposited by Business receiving service

Service tax is exempt in case of

 

Service Provided to Non Business

 

Service tax is exempt in case of

·         Service Provided to Non Business

·         If turnover of business upto 10 lacs

 

 


senior advocate and normal advocate image.png

Who is a Senior Advocate

It means an advocate who Supreme Court or High Court has given distinction of being Senior Advocate

 

An advocate may, with his consent, be designated as senior advocate if the Supreme Court or a High Court is of opinion that by virtue of his ability standing at the Bar or special knowledge or experience in law] he is deserving of such distinction.

 (Notification 9/2016)


Service tax on Advocates from June 6,2016 onwards

Special provisions for Senior Advocates have been removed

Both Senior and Normal Advocates are taxed in similar manner

 

Service Provided to Non Business

Service Tax is exempt

 

Service Provided to Business

If turnover of business upto 10 lacs in last year

Service Tax is exempt

 

If turnover of business > 10 lacs in last year

Service tax is applicable.

Also reverse charge is applicable and receiver (business pays service tax)

 

both normal & senior advocate image.png

Representative Service by Senior Advocates

It means senior advocate is representing the client in court before judge on behalf of normal advocate

In this case also, service tax is payable by client under Reverse charge

This is of course when client is business entity

(Summary of Notification 32/2016 ,33/2016 and 34/2016)

 

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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