Legal consultancy services

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This query is : Resolved

Manju (Querist)

14 March 2013 Hiii

A firm is providing consultancy to its clients and for this it is also hiring lawyers but the firm is not a law firm.The partners of the firm are not lawyers. Firm is charging under the head "legal consultancy charges" from the clients.

My query is under which head these legal consultancy fees charged by the the firm from the client would be taxable? Legal consultancy service or business auxiliary or any other service?

Thanks in advance

Arun Kumar Singh

Arun Kumar Singh (Expert)

14 March 2013 In respect of services provided or agreed to be provided by individual advocate or a firm of advocates by way of legal services. You are not falling in this category and unnecessary your client will pay the service tax on reverse charge system. Simple you should raise the invoice in the head of consultancy or advisory fee for that particular services. Upto 10 lacks you are exempt from service tax after that you will pay the service tax.

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Manju

Manju (Querist)

14 March 2013 Thanks for your reply Mr. Singh

Please tell me after Rs.10 lacks under which head (Business auxiliary or any other head) i would pay service tax if i made the invoice under advisory or consultancy service?

Arun Kumar Singh

Arun Kumar Singh (Expert)

14 March 2013 You will fall under business auxiliary services. but now one head will be available at the time of registration other than negative list.

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