Applicability of ST on Advocate -5

Applicability of Service Tax on Advocate -5

Notification no. 15/2012-ST dated 17.3.2012 has been issued wherein the taxable services/ cases are prescribed on which reverse charge method will be applicable. The following services are prescribed in respect of which the recipient will be liable to pay the service tax –
 
●        services provided or by an arbitral tribunal
●        services provided by individual advocate

However, service provided by Arbitral Tribunal and advocate is fully exempt under reverse charge vide MEGA EXEMPTION NOTIFICATION NO. 25/2012 DATED 20.06.12 in following cases:-

1. If service provider is Arbitral Tribunal AND Service Receiver is

   (a) Any person other than Business Entity

   (b) Business Entity ( If  Last year turnover is less than Rs. 10 Lakh)

   (c) An Arbitral Tribunal represented to Arbitral Tribunal

2. If service provider are An Individual Advocate, Partnership firm of      Advocates providing legal services AND Service Receiver is

    (a) An Individual Advocate, Partnership firm of Advocates providing legal services

      (b) Any person other than Business Entity

     (c) Business Entity ( If Last year turnover is less than Rs. 10 Lakh)

Note:- (1)Service Receiver is liable to pay Service Tax @ 12.36% on 100% value of the invoice.

          (2) If legal service is received by individual in personal capacity then no reverse charge applicable.

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