Service tax on legal service of advocate

Sir, i am Sumit Rathod working in pvt ltd. company. I have two queries of service tax.

  1. My company has pay Rs.16000 Cash to advocate for his legal consultancy service. advocate has small service provider hence he has not charge a service tax. where company has pay service tax on Rs 16000 base on Reverse Charge Mechanisam?
  2. My company has pay Rs.10000 Cash to Individual for his legal & Professional service. he is also small service provider. where company has pay service tax on Rs 10000 base on Reverse Charge Mechanisam?
Replies (3)

Assuming that the turnover of your company is more than Rs. 10 Lacs(hence, the same is not exempt under mega exemption- N/N 25/2012-ST, entry no. 6(b)). 

Accordingly, in first case, the reverse charge liability shall arise on account of company by virtue of N/N 30/2012-ST, since in case of reverse charge, the threshold limit of Rs. 10 lacs(as available by N.N 33/2012) is not allowed for reverse charge.

In second case, since the amount is not paid to an advocate, hence no reverse charge shall apply.

Agree with Grover Ji..

Dear Sumitji,

What is the defination of advocate in service tax, an advocate should  have certificate or a practicener is also count as advocate.

I would like to ask if invoice issued by praticener of advocate will be applicable for service tax on legal service.

Thanks 

Lalit Sangani

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