ST on Advocates under reverse mechanism

[Deepak Whorra]

Under the Reverse Service Tax mechanism, do we have to pay service tax on bills of advocates - firm of advocates and individual advocate bills.

 

Is there a court "stay Order" on payment of bills of Individual advocates ? If yes, what are the conditions of this "stay Order ".

AI Summary

Reverse charge on legal services requires business recipients to pay service tax; small-turnover exemption applies; advocates need not collect tax.
Reverse charge applicability: where a business entity receives legal advice or representational services from an advocate or advocate firm, the service receiver is liable to pay service tax under the reverse charge mechanism; the advocate need not charge service tax. Tax paid by the recipient may be taken as input tax credit if engaged in taxable outputs. An exemption excludes services to business entities below the small-turnover threshold, relieving such recipients from reverse charge liability. No specific court stay conditions on advocate bill payment are provided in the text.