If Bill raised by a C A service tax would be charged or not

Queries 617 views 2 replies

Dear All,

my query is this:
Suppose

if A is a practicing CA (Partnership Firm) and B (Partnership Firm) his client, A hired a Advocate C (Individual) for representation the case of B before High Court.

for this A paid fee to Advocate C and raise a Bill to B for hearing in High Court.

My question is this A would be charge service on Bill raised to B or Not ?

Kindly explain and oblige, your comments are more important with the solution.

Rgds

Replies (2)

Hi

My views

  1. As per service tax rules the person is liable to pay /charge Service tax when turnover(gross) is cross 10 lacs.
  2. If A is paying on behalf of B as pure agent so there is no liablity of Service Tax.
  3. If A is charges as his Professional fee(and he is registered under service tax auth) is liable for charge Service Tax on that bill.

A (Practicing CA) will raise the bill to B (Client) only our Service charges. A will not raise the bill to B of service provided by C (Individual Advocate). C will charge the bill to B. (Service Tax will not be applicable on any service of appearance before any court of law or any statutory authority).


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