Service tax, q and ans.

Q.Whether service Tax is applicable, if service received by individual in personal capacity from advocate?

 

Ans. As per Notification no. 25/2012 dated 20-6-2012, any legal service provided by an advocate/firm of advocates to any person other than business entity is exempt from Service tax.

So any legal service provided by an advocate to an individual in personal capacity is exempt from Service tax.

Replies (12)

Thanks.......for updating.......

Thanxs ..................for Updating ...

Thanks for the update

Dear sir,

Thanks four update 

Thanks sir for updating.

Dear Navinji,

What about sitting fees paid to advocate -non executive director?? Is it chargeable for service tax

further, If the Service recipient is Specified person then does it required to pay under reverse charge mechanism??

 

Regards

Amit kedia

@ Amit

1. Yes sevice tax is applicable.

2. Yes, Reverse Charge Mechanism is applicable. i.e. 100% service tax will be deposited by service receiver.

Earlier there was a circular in which it was clarified that sitting fees is not a service but now because of the introduction of negative list position has been changed??

None of the non executive director raise his bill for sitting fees as it is compensation for attending the meeting which is required to attended by the NED.

What if it is an MBA NED and not giving any bills for sitting fees but covered under tax net ??

Executive directors are treated as employees and hence they will not be covered.  But, for NEDs surely it will be covered.  A new notification is being prepared and expected to be released within this month for removal of doubts.

 

Thanke for the Update...

Thank you very much for updating that one... it is very much important..
:)

ebay accountants
 

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