Payments to advocates

[Sreeni Nair]

As per notification no. 13/2017 - Central Tax (Rate) dated 28th June, 2017, Services supplied by an individual advocate including a senior advocate by way of representational services before any court, tribunal or authority, directly or indirectly, to any business entity located in the taxable territory, including where contract for provision of such service has been entered through another advocate or a firm of advocates, or by a firm of advocates, by way of legal services, to a business entity comes under the purview of GST under reverse charge.

My query is whether services provided by an advocate which results in representation before any court, tribunal or authority only attracts GST under reverse charge or all legal services irrespective of such services resulting in any representation before any court, tribunal or authority attract GST under reverse charge?

[ASHISH SHAH]

"by way of legal services" is mentioned there, so all kinds of legal services are covered and RCM on them must be payable by a business entity.

[KASTURI SETHI]

I think the querist has missed the corrigendum issued to Notification No.13/2017-CT(Rate). Pl. read the explanation given below the corrigendum. The words, 'in any manner' clears the doubt. I agree with Sh.Ashish Shah.

Corrigendum to Notification No. 13/2017-C.T. (Rate)

In the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 13/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 692(E), dated the 28th June, 2017, at page 161, in the Table, against serial number 2, in column (2), for -

(2)

“Services supplied by an individual advocate including a senior advocate by way of representational services before any court, tribunal or authority, directly or indirectly, to any business entity located in the taxable territory, including where contract for provision of such service has been entered through another advocate or a firm of advocates, or by a firm of advocates, by way of legal services, to a business entity.”,

read

(2)

“Services provided by an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly.

Explanation. - “legal service” means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority.”.

[M.F. (D.R.) Corrigendum F. No. 336/20/2017-TRU, dated 25-9-2017]

AI Summary

Reverse charge on legal services requires recipient businesses to pay GST for all advisory and representational legal work supplied. Services provided by individual advocates, senior advocates, or firms of advocates by way of legal services are taxable under GST on reverse charge when supplied to business entities; the corrigendum defines 'legal service' to include advice, consultancy, assistance in any branch of law 'in any manner' and expressly includes representational services, making the recipient business liable to pay GST under reverse charge for such services supplied directly or indirectly.