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Service tax on lawyer's fees


Sunil (Trader)     21 March 2013

Sunil
Trader 
 101 likes  2602 points

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I provide brokerage services in my individual name. I do not  have a proprietorship concern as volume is small and this is in addition to my employment. My turnover is way below 10 lakhs per annum.

Reading negative list it is indicated that advocates fees to individuals and business entities with turnover below 10 lakhs is not taxable and to business entities (individual, proprietorship, firms, companies etc.) are taxable. Moreover the liability is on the receiver of service at 100%.

Given the above condition, in case I am doing business as an individual and have to bear the service tax on lawyers fees, is it limited to fees paid for any of my business matters or also on fees paid for personal matters like family matters or criminal cases or consumer court matters for whatever goods or services I obtain for my personal use. I normally do not have any business matters that I need to engage any lawyers as there are never any business disputes or cases for which I need a lawyer.

In short would I have to pay on reverse charge mechanism for personal matters just because I am doing business as an individual. In that respect even a partner drawing salary as an individual from partnership firm is having business income.

avater

TKKKKKK (PRACTICING CA)     21 March 2013

TKKKKKK
PRACTICING CA 
 341 likes  3256 points

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you have not to pay s.tax  .as your turn over is less than 10 lacs.

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Sunil (Trader)     21 March 2013

Sunil
Trader 
 101 likes  2602 points

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The Service Tax Act excludes payments received by an employee from an employer during course of employment. We normally receive TDS form 16 for TDS done u/s 192 of Income Tax Act and show this amount under salary. For the purpose of Section 68 (2) of Service Tax what constitutes turnover of 10 lakhs. is it only business turnover (sale of goods + provision of services whether taxable or not) or do salaries and capital gain items like sale of shares or property get included in this turnover.

avater

TKKKKKK (PRACTICING CA)     22 March 2013

TKKKKKK
PRACTICING CA 
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only sale of goods and provision of service....taxable or not..

voisbornn (B.Com)     21 February 2014

voisbornn
B.Com 
 21 points

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I had gone throug the posts. The information which you shared bout service tax is good. Generally, On what aspects did the service tax will be consider?

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