SERVICE TAX ON LEGAL SERVICES

[SUMEDH AYARE]

WE HAVE RECEIVED BILL FROM SENIOR ADVOCATE TOWARDS FEES FOR PROFESSIONAL SERVICES RENDERED. DETAILS : APPEARANCE BEFORE HON'BLE HIGH COURT IN CONNECTION WITH HEARING OF TWO APPEALS FOR THE ASSESSNEBT YEAR 2006-07. AS A SERVICE RECEIVER WHETHER I AM LIABLE TO PAY SERVICE TAX. (IS THERE ANY OPTION TO SAVE THE SERVICE TAX)

AI Summary

Liability to pay service tax on legal services hinges on turnover exceeding 10 lakhs, according to Reverse Charge Mechanism. A query was raised regarding the liability to pay service tax on legal services received from a senior advocate for appearances before the High Court related to appeals for the assessment year 2006-07. The response clarified that if the service receiver's turnover for the financial year ending on March 31, 2012, exceeded 10 lakhs, they are liable to pay service tax under the Reverse Charge Mechanism (RCM). If the turnover did not exceed this amount, they are not liable to pay the service tax.