CA NeWs Beta*: Service tax on advocates from 1.07.2012

Search This Site

Thursday, July 5, 2012

Service tax on advocates from 1.07.2012

By way of Notification No. 25/2012 – ST dtd. 20.06.2012, the Government has exempted service by an individual advocate or a partnership firm of advocates by way of legal services to, -

i) an advocate or partnership firm of advocates providing legal services;

ii) any person other than a business entity; or

iii) a business entity with a turnover upto Rs. 10 Lakhs in the preceding financial year.

“Legal service” is defined to mean any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority.

“Business entity” is defined to mean any person ordinarily carrying out any activity relating to industry, commerce or any other business.

Under Notification No. 30/2012 – ST dtd. 20.06.2012, in respect of services provided by an individual advocate or a firm of advocates by way of legal service to a business entity, such business entity is liable to whole of service tax.

Thus, the individual advocates or a partnership firm of advocates providing legal service are not liable to pay service tax under any circumstance and in case of service provided to the business entities having turnover above Rs. 10 Lakhs in the preceding financial year, such business entities are only liable to pay tax.

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...
For mobile version of this site click here


News Archive

Recommended Post Slide Out For Blogger