service tax by senior advocates

[Asked by Guest]

Sir,

As senior advocates is hired through another advocate and there is no direct contract between senior advocates and client which is a business entity. Hence tax would be paid on the fee charge by senior advocate under forward charge, on the same transaction it would be paid by client under reverse charge on the services rendered by advocate as the same would be included. So, there will be double taxation on the same transaction. Please Clarify the same? and as a student i want your guidance on the point 'how it can be avoided'.

Thanks

AI Summary

Reverse charge on senior advocate fees makes the recipient liable for service tax, preventing double taxation where intermediaries are used.
Services by a senior advocate are taxed under the reverse charge mechanism, making the recipient liable rather than the senior advocate. Representational services for a business entity attract recipient liability; for advisory services liability depends on whom the invoice or opinion is addressed to (client or intermediary law firm). To prevent overlapping obligations, senior advocates should be asked to invoice the end client directly. A small turnover exemption excludes qualifying individual litigants and small business recipients from reverse charge liability.