GST Course

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


 

S.No.

Description of supply of service

Supplier of service

Recipient of service

1

Services provided by an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly

An individual advocate Including a senior advocate

or firm of advocates

Any business entity located in the taxable territory

Exemption: Notification No. 12/2017- Central Tax (Rate):

Implications of GST on Legal Services

GST on legal services can be summarized as under

 

Service Providers

Service Recipient

Taxability

Firm or

Individual advocates

1. Firm or individual advocates providing legal service

Exempted vide notification no. 12/2017

2. Any person other than business entities

3. Business entities having a turnover up to INR 20,00,000 (or INR 10,00,000 in some case)

4. Business entities having a turnover above INR 20,00,000 (or INR 10,00,000 in some case)

Tax payable under Reverse Charge Mechanism

Senior advocate

1. Any person other than business entities

Exempted vide notification no. 12/2017

2. Business entities having a turnover up to INR 20,00,000 (or INR 10,00,000 in some case)

3. Business entities having a turnover above INR 20,00,000 (or INR 10,00,000 in some case)

Tax payable under Reverse Charge Mechanism

In case GST is applicable, the GST rate applicable on legal services would be 18%.

Definitions as per Notification No. 12/2017- Central Tax (Rate)

1. "legal service" means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court,

2. "advocate" has the same meaning as assigned to it in clause (a) of sub-section (1) of section 2 of the Advocates Act, 1961 (25 of 1961)

3. "senior advocate" has the same meaning as assigned to it in section 16 of the Advocates Act,1961 (25 of 1961)

4. "business entity" means any person carrying out business

Further Issue is How to Determine Place of Supply in case of Legal Service

For this purpose, we have to read definition of [location of the recipient of services - Section 2(14) & location of the supplier of services- Section 2(15) as well as of fixed establishment- Section 2(7)]

Section 2(14)-"location of the recipient of services"

a) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business;

b) where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;

c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and

d) in absence of such places, the location of the usual place of residence of the recipient;

Section 2(15) "location of the supplier of services"

a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business;

 

b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;

c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and

d) in absence of such places, the location of the usual place of residence of the supplier;

 

Section 2(7) "fixed establishment" means

A place (other than the registered place of business) which is characterized by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services or to receive and use services for its own needs;


Tags :



Category GST, Other Articles by - CA Himanshu Garg 



Comments


update