BLOGS

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From 01/4/2016, Senior Advocates became liable to pay Service Tax under forward charge.  However with the huge protest from the Senior Advocates, amendment made as under-

01.Exemption

Provision of service by Senior Advocate to

- any person other than a business entity; or

- a business entity with a turnover up to rupees 10 lacs in the preceding FY.

{Notification No. 32/2016}
So taxable only in case where service received by business entity having turnover more than 10 lacs in a preceding FY.

02.Applicability of Reverse Charge

Business entity located in taxable territory, having turnover more than 10 lacs in a preceding FY, is liable to pay tax under reverse charge in case representational service before any court, tribunal or authority received from the Senior Advocate. It is applicable even in case Senior Lawyer is engaged by advocate or a firm of advocates. {Notification No. 33/2016}

Further, amendment is also made in {Notification No. 34/2016} which states that full reverse charge mechanism concept prevailed and clarified that 

"The business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services for the purpose of this notification."

To know more, click here to read notification
{Notification No. 32/2016}
{Notification No. 33/2016}
{Notification No. 34/2016}

 

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