Service tax on legal service
This query is : Resolved
09 June 2014
Whether service Tax is paybale under reverse mechanism on all gross amount i.e. which includes typing charges or other clearical charges in addition to legal service or it will restrict to amount of legal service when only a single bill of has been raised with bifurcation of all types of charges.
09 June 2014
it is applicable only on fees payable to lawyer excluding reimbursement or like exp.
09 June 2014
Whether for this we have to take separate bill of legal consultancy and of reimbursement expenses or a consolidated bill baving bifurcation maybe entertained. please clearify
24 July 2025
For service tax under reverse charge on legal services, the tax is applicable **only on the professional/legal fees** payable to the advocate or law firm. It **does not apply to reimbursed expenses** such as typing charges, clerical charges, or other out-of-pocket expenses.
### Regarding billing:
* **A consolidated bill with clear bifurcation** of legal fees and reimbursed expenses is acceptable.
* There is **no mandatory requirement to have separate bills**, but the breakdown must be clear to segregate taxable legal fees from non-taxable reimbursable expenses.
This way, service tax under reverse charge can be correctly applied **only on the legal fees portion**.
---
If the invoice lumps all charges together without proper bifurcation, the entire amount might be treated as taxable, so it's always better to ask the lawyer to provide a detailed breakup for clarity and compliance.
### Regarding billing:
* **A consolidated bill with clear bifurcation** of legal fees and reimbursed expenses is acceptable.
* There is **no mandatory requirement to have separate bills**, but the breakdown must be clear to segregate taxable legal fees from non-taxable reimbursable expenses.
This way, service tax under reverse charge can be correctly applied **only on the legal fees portion**.
---
If the invoice lumps all charges together without proper bifurcation, the entire amount might be treated as taxable, so it's always better to ask the lawyer to provide a detailed breakup for clarity and compliance.
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