The service provided by an individual Advocate & the service receipient is company then Service Tax is required to be paid by the service receipient under reverse charge method w.e.f. 01.07.2012. My query is whether the company has to pay service tax to the extent of fees paid to the advocate or also on other expenses re-imbursed by the company (such as trivelling, fooding expenses etc.).
Regards,
VINAY
Service Tax Query: Reverse Charge on Advocate Services-Fees Only or Include Reimbursed Expenses? A query was raised regarding the application of service tax under the reverse charge mechanism when a company receives services from an individual advocate. The question focused on whether the company must pay service tax solely on the advocate's fees or also on reimbursed expenses like travel and food. One response indicated that service tax should be paid on the total amount, including fees and reimbursed expenses. Another response suggested that service tax applies only to the fee portion, recommending separate billing for fees and other expenses to clarify tax obligations. (AI Summary)
TaxTMI 
TaxTMI 
