Service tax on the free service provide by lawyer
shanky budhiraja
(Querist) 03 January 2011
This query is : Resolved
Please tell me whether free service provided by a lawyer will attract service tax laibility if yes or no plase give reasons also to support your answer.
further if yes what will be the taxable value and when the payment laibility would arise.
R.Ramachandran
(Expert) 03 January 2011
Dear Mr. Shanky,
The services rendered by a lawyer will attract service tax only if there is any consideration received by the lawyer for the said legal service.
Further service tax will not get attracted in case services are provided by the individual lawyers.
The service tax will get attracted only when the legal consultancy service is provided by a business entity (i.e. law firm) to another business entity. Even here the service tax will get attracted only when there is 'consideration'. If the service rendered is free it will not attract service tax.
The legal service by way of appearance before any court, tribunal or authority will not attract service tax since such service is not a 'taxable service'.
The service tax will attract only when the quantum of consideration for rendering such taxable services exceed Rs. 10 lakhs in a financial year.
Manish Singh
(Expert) 04 January 2011
Yes, there will be no service tax.
