applicability of service tax

[kamal chordia]

Dear Sir

We are taking legal services from consultant firm, we are paying him service tax on professional services provide by him. But he also gives us seperate bills for visit to attend the hearing, clerical  and  typing work and on  these part he is charging service tax.

Have we  pay service tax on it, if yes, under which provision of service tax it is payable by us.

Please clarify the same.

Thanks & regards

Kamal

[A Wilson]

Dear Sir,

I have some clarification in your Query. 

• Legal Services Provided by Consultant Firm. Whether the Consultant Firm is Group of Advocates or others?
• Your Company Status - Partnership Firm or Private Ltd or Ltd other, please specify?

Thanks & Regards,

A.Wilson

[LAKSHMINARAYANAN TR]

Status of Service Provider is also important.

If your Consultant are operating as a Pvt Ltd Company, then they will charge 12.36 percent Service Tax on all their services.

If your legal Consultant (Whether Firm / Proprietorship) are Advocates, then reverse Charge Mechanism applies to you for all services rendered by them, whether for Advisory / appearing before authorities.

CA T R Lakshmi Narayanan

AI Summary

Reverse charge mechanism applies to recipient for legal services, including appearances and related clerical work. Tax liability turns on provider status: a private limited company must charge applicable service tax on all services; if the provider is an advocate or advocate firm/proprietorship, the reverse charge mechanism makes the recipient liable to pay service tax on all services rendered, including advisory work, appearances, and attendant clerical, typing or hearing-visit charges.