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

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Rathi

M-A

21 Points Posted on 27 April 2010

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)

Jyoti Malik

ACCOUNTANT

1861 Points Posted on 28 April 2010

My views

As per service tax rules the person is liable to pay /charge Service tax when turnover(gross) is cross 10 lacs.
If A is paying on behalf of B as pure agent so there is no liablity of Service Tax.
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.

Arun Kumar Singh

GST Advocate

13166 Points Posted on 28 April 2010

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).