Help required regarding amendment in Legal Service RCM

[paresh ayadi]

Sir,

I have two queries regarding amendment in finance bill, 2016 with regards to legal services.

1. Whether all Service by 'Senior Advocates' are liable for forward charge or only service provided to 'Junior Advocates' are under forward charge ??

2 - exe mption withdrawn on service provided by (i)....(ii) a person represented on an arbitral tribunal to an arbitral tribunal........What is meaning of it ??

Thanks

[KASTURI SETHI]

Sh.Paresh Ayadi Ji,

Reply to your queries are as under :-

Q. No.1. Yes all services provided by Senior Advocates fall under forward charge but still exemptions are available to them.

Q.No.2. Arbitral Tribunal is non-judicial court.It is out of Code of Civil Procedures, 1908 or Indian Evidence Act, 1872 and out of judicial court. This is pre-stage to judicial court. It is a substitute for court of law.. for example ; Lok Adalat, various Settlement Commissions and other commissions set up investigations etc. Arbitrator mean referee, umpire, advocate, etc. So the service provided by such person from one forum to another forum is taxable.

[KASTURI SETHI]

Sh.Paresh Ayadi Ji,

Pl. refer to my reply dated 8.5.2016.

RECTIFICATION

The words, "Other Commissions set up for investigations" may be read as "Other Commissions".

I further elaborate my reply as under:-

Deputation as an advocate, referee, umpire etc. from one tribunal to an other tribunal is also covered in this service. Sometimes ICC, BCCI etc. also act as Arbitral Tribunal when these impose penalty, fine upon a player. Sometimes they suspend any player for one or two matches or impose ban for life. After exhausting the channel, the accused player go the the Court.

[Ganeshan Kalyani]

Thanks Sri Kasturi Sir you reply enriched my knowledge. Thanks.

[paresh ayadi]

Thank you very much sir....

AI Summary

Clarification on Finance Bill 2016: Service Tax Implications for Senior Advocates and Arbitral Tribunals Explained A user sought clarification on amendments in the Finance Bill, 2016, regarding legal services and service tax implications for senior advocates and arbitral tribunals. The first query addressed whether all services by senior advocates fall under forward charge, confirming they do, with certain exemptions. The second query involved the taxation of services provided by individuals on arbitral tribunals, clarifying that such tribunals are non-judicial and serve as alternatives to courts. A follow-up rectified a previous statement, emphasizing that deputation between tribunals is taxable. The discussion concluded with acknowledgments for the informative responses.