19 February 2013
As per Central Govt. Notification no 30-2012 and 33-2012 on Service Tax, it is evident that in case of services provided by individual advocates or a firm of advocates, the service recipient is liable under the reverse charge mechanism to pay 100% of the tax liability @ 12.36%. (irrespective of the turnover of the service recipient, refer http://www.servicetax.gov.in/notifications/notfns-2012/st33-2012.htm)
Further the recipient can claim Cenvat credit on the same.
So, Indirctly M/s ABC Does't have to pay any service tax for legal service they just have to show in the RETURN that they are liable to pay S.T. & they have taken SET OFF for that