RCM on any services provided by law firm

[Guest]

Does any service provided by a law firm including services related to company law matters i.e. regular and yearly secretarial compliance, resident directors service? Aforementioned services are actually not legal services but they are provided by a law firm. In such case, whether reverse charge should be payable on such services?

[KASTURI SETHI]

Yes. RCM is applicable.

2. Definitions.[Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017]

(zm) “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;

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

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

Also see Press Release No.81/2017 dated 15.7.17

[Guest]

Thank you for your answer.

[Himansu Sekhar]

I agree with Kasturi Sir

AI Summary

Reverse charge mechanism applies to law firm services, including company secretarial and advisory services, under the legal service definition. Reverse charge liability arises on services supplied by law firms, including company law compliance such as secretarial and resident director services, because the statutory definition of 'legal service' covers any advice, consultancy or assistance in any branch of law and includes representational services; consequently these supplies attract RCM as per the cited notification and corrigendum.