Hello,
A client of mine is refusing to accept my rationale for registering for GST and payment of the taxes due under the regime. My client has been misguided by someone and the reasons that she has put up has left me also confused. I am posting this to get some clarity from dear friends in this forum.
My client runs a law firm that is providing legal services to clients who are situated outside of India. The legal services pertain to filing of applications, and prosecution of such applications within the judicial system of India. That is the services are delivered in India, even though the customers that my clients provide services for are located outside of India and the payment for such services are received as foreign currency in India.
Now, someone has advised my client that the services that she provide come within the definition of export of services and hence it will not come under the purview of GST. But my understanding is that the definition of "export of services" will be applicable only if the place of delivery of such service is outside India, even if the payment for such services are received in foreign currency. In this situation, the services are being provided in India. I had a doubt whether legal services do not come under the ambit of the GST law. But it is not so and the applicable GST rate for a legal firm providing legal services is 18%.
Is there anything that I am missing here?
Kindly help with this query.
Thanks,
Raj.
CAclubindia
