Service Tax under RCM on Very old invoice

[abbas mukhi]

Dear Experts,

If we are paying Advocate bill of 2004 now, then is there any liability of Service Tax under RCM and interest on it ?

AI Summary

No Service Tax liability for 2004 advocate's bill under RCM; services taxable only from 2009. Maintain documentation. A query was raised about the liability of Service Tax under the Reverse Charge Mechanism (RCM) for paying an advocate's bill from 2004. Experts responded that there is no liability since the service was rendered before it became taxable. Legal consultancy services were included in the Service Tax network in 2009, and the Point of Taxation (POT) Rules were introduced in 2011. Therefore, services provided by an individual advocate in 2004 were not taxable. It was advised to maintain proper documentation as auditors might review the ledger accounts for such expenses.