Service tax on Legal consultancy servi

[Ganeshan Kalyani]

Dear Experts,

The legal consultancy service and chartered accountants service are both provided by qualified professionals. The first service is provided by advocates and the later by Chartered accountants. But a thought came in my mind as to why Legal service is brought under reverse charge but the chartered accountants service is not included. Please share your views in this regard.

AI Summary

Debate Sparks Over Service Tax Disparities: Advocates Exempt Under Reverse Charge, Chartered Accountants Not. A discussion on a forum revolves around the service tax implications for legal consultancy and chartered accountancy services. A participant questions why legal services are subject to a reverse charge mechanism, exempting advocates, while chartered accountants are not. Respondents clarify that services by advocates are exempt from service tax under certain conditions, citing relevant notifications. The debate highlights the disparity in tax treatment between advocates and other professionals like chartered accountants, with some participants suggesting that the rationale behind this policy is known only to lawmakers. They propose advocating for equal treatment through official channels.