Reversre charge on Legal fees paid out side the India

[Asked by Guest]

Dear Sir,

We are a India based company and having manpower supply business ( turnover more than 10 lacs). we are fighting a legal case regarding manpower issue in Oman (Out side india) with the help of an advocate in oman. We are paying legal fees to advocate around 1 Crore p.a.. Whether i need to pay service tax on the same in India.

AI Summary

Place of provision of services determines reverse-charge liability for foreign legal fees paid by Indian service recipients.
Under the Place of Provision of Services Rules (POPOS Rules, 2012), Rule 3, the location of the service receiver governs taxability; if the receiver is located in India the service is treated as provided in a taxable territory and the Indian recipient may be liable to discharge service tax under the reverse charge mechanism, while an alternative view contends services rendered outside India are not taxable and Rule 9 is inapplicable here.