Service tax on lawyer fees

Any business entity having turnover more than Rs.10 lacs in preceding financial year.iis applicable for adovocates& lawyers then service tax is applicable only 50000 and not rs 55000 out ofpocket expenses sholuld notchaged as service tax.lawyers will only servvice accounting head.

In case he cross the 10 lakh per annum turnover. Than how can he show there invoice please explain me.....

It falls under reverse charge. . no turnover criteria is there earlier s.tax on reimbursement is nt applicable but from new budget of 15 16 s tax will applicable to whole amt of invoice. so s tax on rs. 55000 by the service reciver is payable

I agree with sesha, it is specifically mentioned under notification no. 25/2012 that any business entity with turnover upto Rs 10 lac in the preceeding fy is exempted from service tax. Secondly if turnover exceeds Rs 10 lac then reverse charge will be applicable as per notification no. 30/2012. After amendment in budget 15-16 reimbursement expebses will be included in valuation but date of applicability is stilln not notified.

Thanks all.

To add-Reimbursable expenditure shall be included in the value of taxable services(Amdt to  Sec 67 of FA,1994) to be effective from the date of enactment of Finance bill,2015

if advocate fees 1000 and govt fees 1000 so service tax applicable on 2000/= or 1000/= for service tax reverse charges

st in above example shall be paid only on legal service component on rcm.

out of pocket expenses can not be billed, a seperate debit not may be issued (if required) for such expenses