Service tax on lawyers

[satbir singhwahi]

Pls guide the amendment in service tax on legal services from 01.04.2016

[Ganeshan Kalyani]

At present, the service tax on legal consultancy service provided by an advocate or a firm of advocates to a business entity is paid by business entity under reverse charge mechanism. An amendment is made to exclude ‘Senior Advocate’ from reverse charge basis. They shall now have to pay service tax under forward charge. This is applicable with effect from 1^st April 2016.

[KASTURI SETHI]

I concur with the views of Sh.Ganeshan Kalyani, Sir.

[satbir singhwahi]

Thanks Sir

[Suryanarayana Sathineni]

Our friends have clearly given the clarity that there is no change in the existing procedure except, for the services of senior advocate which is made taxable and hence need no further intervention.

Regards

Suryanarayana

[Ganeshan Kalyani]

Thanks Sri Kasturi Sir and Sri Surya Sir.

AI Summary

Senior Advocates Now Pay Service Tax Under Forward Charge, Excluded from Reverse Charge Mechanism as of April 2016. A discussion on a legal forum addressed the amendment in service tax on legal services effective from April 1, 2016. Currently, business entities pay service tax on legal consultancy services under the reverse charge mechanism. The amendment specifies that 'Senior Advocates' are excluded from this mechanism and must now pay service tax under the forward charge. Participants in the forum, including Ganeshan Kalyani and Kasturi Sethi, agreed on this interpretation, emphasizing no other changes except for the new tax obligation on senior advocates.