Reverse charge on advocate service

[sunil jain]

As per Notification No. 30/2012 dt 20.06.02012 issued under section 68(2), one of the Taxable services where service tax shall be paid by service receiver on Reverse Charge Basis, is service provided by an individual advocate or a firm of advocates by way ofSUPPORT SERVICES (vide para I(A)(iv)(B) of notification. However In Table given in Para (II), the description is 'in r/o services provided by an individual advocate or a firm of advocates by way of LEGAL SERVICE'.  there appears to be inconsistency, as in main para I(A)(iv)(B), it is mentioned as 'by way of support service where as in Table it is mentioned as 'by way of legal service'. Hence as per main charging para I(A)(iv)(B), only 'support services' are covered for reverse charge purpose, whereas Table says Legal Services'.

Hence pl clarify whether entire legal services are covered under Reverse Charge basis or only Support service. Further in case only support services are covered under Reverse charge then is service provider to deposit service tax on legal basis.

Please look into clarify.

 

Thanks,

CA. R.K. Aggarwal  

[YAGAY andSUN]

By incorporating the Support Services and Legal Services, the intention of the Revenue Department is to extend the scope of services provided, except this, there is no relevance of such phrases.

Further, in Support services what is not included has been very well stated in the notification.

AI Summary

Reverse charge on advocate services: recipient liable under notification; scope covers both support and legal services. The notification places liability for service tax on the service receiver for advocate-related services; the revenue's intention is to encompass both support services and legal services within the reverse charge scope, and the notification separately specifies exclusions from support services.