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

Reverse charge on legal services: senior advocates removed from RCM and now taxable under forward charge. Legal consultancy supplied by advocates or firms to business entities was subject to the reverse charge mechanism (business entity pays); an amendment excludes senior advocates from reverse charge so that senior advocates are taxable on a forward charge basis while existing procedures for other advocate services remain unchanged.