Dear Sir/ Madam
Service Tax liability has been widened in case of legal professional in this budget 2011 except for services rendered to individual to another individual.
In this lines I would like to be clarified for the following circumstance:
A is a senior advocate and billing a company for X amount along with service tax for the legal services rendered. In this case he had utilized services of a junior advocate B for which he had raised a invoice on A for Y amount.
In this circumstance,
a. Mr A has to pay service tax in cash to the extent of service tax on X less input credit on Y Amount if raised by B.
Or alternatively
b. Junior Advocate B should not include service tax on his bill to A since A & B are individuals and B rendered service to another individual A.
In this circumstance we should bear in mind that in Central Excise if the manufacturer undertake to pay the entire tax amount the sub contractor need not pay the tax.
I request the learned experts to clarify my doubt as this will be much helpful to other also
Thanks in advance
T M N Kesavan
CAclubindia
