Service tax aapllicable to advocates ?

Anil P. Malani (Querist) 11 February 2012 This query is : Resolved
I am practicing as lawyer from more than 10 year in Aurangabad. My professional income is more than 10 lacs I want know whether service tax applicable to Advocates? If yeas how much tax liable to pay ? whether on my court practice service tax applicable ? whether service tax applicable on only consulting fees only?

Follow Query

Report Abuse

M.Sheik Mohammed Ali (Expert) 11 February 2012
yes, service tax applicable in all the advocate. check with any CA office.

V R SHROFF (Expert) 11 February 2012
Recently introduced.

C M Sharma (Expert) 11 February 2012
Pleaase study the link below -

http://www.servicetax.gov.in/st-profiles/legal-consltcy.pdf

File is attached.
C M Sharma

R.Ramachandran (Expert) 11 February 2012
Dear Mr. Anil,
According to Section 65 (105)(zzzzm) of the Finance Act, 1994 (as amended),

Taxable service means any service provided or to be provided to:

(i) to any person, by a business entity, in relation to advice, consultancy or assistance in any branch of law, in any manner;

(ii) to any business entity, by any person, in relation to representational services before any court, tribunal or authority;

(iii)to any business entity, by an arbitral tribunal, in respect of arbitration.

Thus with effect from 1.5.2011, as per clause (i) above, if a service in the natue of advice, consultancy or assistance in any branch of law, is provided by a business entity (i.e. a law firm etc.) to any person - that person can be either an individual or a business entity, then service tax is attracted, subject to the threshold limit of Rs. 10 lakhs being fulfilled.

In terms of clause (ii) above, if any person (i.e. an individual lawyer, not a law firm) provides REPRESENTATIONAL SERVICE to a business entity (not to an individual), then the same will attract service tax, again provided the threshold limit of Rs. 10 lakhs is satisfied.

In other words, if a lawyer provides service to an individual it will not attract service tax.

However, if an individual lawyer provides representational service (i.e. appearance before any court, tribunal or authority etc.)to a Business entity, it will attract service tax.

Wherever the service tax is applicable, the lawyer concerned can charge the same to the client showing separately the service tax.