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Whether service tax is applicable on advocates

Shashi Prakash Singh (Accounts Manager) (25 Points)

15 July 2013

Whether service tax is charged to Advocates. He is taking fees from Consultancy and from hearing also.

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2 Replies

Nirav Worah (CHARTERED ACCOUNTANT) (396 Points)
Replied 15 July 2013

In most of the cases the advocates have been exempted and they will not charge service tax. However, in some cases, the service tax liability has been imposed on service receiver. Hence, in case advocate will charge service tax.

Phalgun (Audit Manager) (327 Points)
Replied 15 July 2013

Legal services can be defined as any advisory or consultancy or assitance in any branch of law. With the introduction of RCM (Reverse Charge Mechanism) onus of ST payment is shifted to service recipient, thus exempting service provider. Its the legal service receiver who will be liable to pay ST & not the service provider.