Pls guide the amendment in service tax on legal services from 01.04.2016
Service tax on lawyers
satbir singhwahi
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. (AI Summary)