Service Tax applicability on NHAI by Advocates

[Rajesh Sharma]

I want to know whether service provided by an Advocate or association of advocates to NHAI falls under Service Tax net in the year 2011-12. As per the definition of the Act on Legal Consultancy, services provided by a person to  a 'business entity' falls under the service tax net. Therefore, I want to know whether NHAI falls in the category of business entity. As NHAI is authority enacted by an ACT through Parliament.

 

Waiting for your quick reply.

[YAGAY andSUN]

NHAI can't be treated at par with Business Entity. Hence, No Service Tax would be applicable in this scenario.

[Rajesh Sharma]

In my view, as per the definition of Legal consultancy services:

 

Service provided to: "to any person by a business entity" comes under the service tax net, hence service provided by a legal consultancy association to NHAI falls under the Service Tax net.

[Harsh Jindal]

NHAI can't be treated as a business entity as it is an authority enacted by an act of parliament. Hence, no service tax will be applicable.

AI Summary

Service tax on legal consultancy: whether a statutory authority qualifies as a business entity for taxability. Whether service tax applies to legal services provided to the National Highways Authority depends on whether NHAI qualifies as a business entity under the definition of Legal Consultancy; contributors disagree, with some treating NHAI as a non-business statutory authority (no tax) and others treating services to NHAI as taxable.