TaxTMI 
TaxTMI 
Dear All,
Greeting of the day. Kindly confirm that S.tax liability on Advocate Services from 01.04.2016. How much limit and how much % will pay service receiver. Cenvat input can utilized for above payment.
Regards
M.RamKumar
S.Tax liability on Advocate Service and Input status
04 Jun 2016 
10 Replies 
2135 Views Asked by
Reverse charge on advocate services makes service recipients liable and affects cenvat credit eligibility under new notifications.
Where legal services fall under the reverse charge mechanism, the service recipient is liable to discharge service tax and may avail Cenvat credit subject to conditions; small service threshold exemptions do not generally relieve the service recipient. Notifications in early 2016 altered the charge mechanism for certain senior advocate services, creating instances of forward charge and changing applicability for services to advocates, arbitral tribunals and business persons, while the existing dispensation for advocate firms and non-senior advocates remains. (AI Summary)
Where legal services fall under the reverse charge mechanism, the service recipient is liable to discharge service tax and may avail Cenvat credit subject to conditions; small service threshold exemptions do not generally relieve the service recipient. Notifications in early 2016 altered the charge mechanism for certain senior advocate services, creating instances of forward charge and changing applicability for services to advocates, arbitral tribunals and business persons, while the existing dispensation for advocate firms and non-senior advocates remains. (AI Summary)