Service tax on advocate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2012 By way of Notification No. 25/2012 – ST dtd. 20.06.2012, the Government has exempted service by an individual advocate or a partnership firm of advocates by way of legal services to, -

i) an advocate or partnership firm of advocates providing legal services;

ii) any person other than a business entity; or

iii) a business entity with a turnover upto Rs. 10 Lakhs in the preceding financial year.

“Legal service” is defined to mean 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, tribunal or authority.

“Business entity” is defined to mean any person ordinarily carrying out any activity relating to industry, commerce or any other business.

My query is that turnover of "business entity" in what respect?

turnover of rs. 10 lacs means releated to "services" or other mean?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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11 October 2012 Business entity is specified because advocate services used for business then only they are taxable if they are not provided to business entity like in trust, individual etc.
Further, the floor of turnover of Rs. 10 lakhs is given in order to exclude very small entities to pay service tax.

CA Navin Jain

CA Navin Jain (Expert)
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11 October 2012 turnover related to services only.

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2012 Kind Attn: Mr. CA Navin Jain

Can you elaborate more?

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
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11 October 2012 The notification does not define "turnover in the preceding financial year" . Notification No 33/ 2012-ST dated 20-06-2012 exempts provider of service from payment of service tax unto aggregate value of taxable service of rs 10 lacs subject to compliance of conditions therein. It therefore appears that turnover of taxable service of business entity in the preceding financial year shall be considered for purpose of granting exemption here....

However this would settle the issue...

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