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Servicetax on litigation fees

jayaprasad (Accounts & Finance Manager) (76 Points)

23 January 2016

Is there is any notification regarding litigation fees for lawyers is exempted from servicetax RCM payable for service receiver. What are the Legal charges are applicable for servicetax RCM .

Thanks in advance

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7 Replies

jitendra bohra (student) (48 Points)
Replied 24 January 2016

A service provided by individual advocate or firm of advocates by way of legal service to any business entity located in taxable territory, 100% REVERSE charge.

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Chandan Singhvi (Very soon) (254 Points)
Replied 24 January 2016

reverse charge, service recevier should pay service tax on services received by a lawyer. check abatments

Ravi Kumar Somani (Indirect Taxes Specialization) (3893 Points)
Replied 24 January 2016

As per notification 25/2012 in clause (6). Legal fees for lawyer is exempted in the following cases:

"Services provided by-
(b) an individual as an advocate or a partnership firm of advocates by way of legal services to,-
(i) an advocate or partnership firm of advocates providing legal services ;
(ii) any person other than a business entity; or
(iii) a business entity with a turnover up to rupees ten lakh in the preceding financial year; or"

Hope i'm clear

Regards,

Ravi Kumar Somani

karan narula (CA) (43 Points)
Replied 24 January 2016

It is only taxable in case servuce receiver is bussiness entity having an turnover in p/f/y of Rs10lakh or more 2. taxable under reverse charge 3. Ccr is available on such paid service tax