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.
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