Service Tax on Legal firm

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Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2009 hi I m working a law firm as accountant
Please tel me when Service Tax Applicable for LAw Firm

ANIL JANGID

ANIL JANGID (Expert)
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31 December 2009 This tax, however, would not be applicable if either the service provider or the service receiver is an individual. Also exempted are services before courts.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 January 2010 As the service tax will apply on advice provided by a business entity to another business entity, sole proprietorships will not come within the purview of the service tax.
Expressing similar opinion, Atul Gupta, member of the ICAI Executive Committee (northern region) said,as sole proprietorships are not business entities they will not be required to pay service tax.
Only law firms, which are business entities under the Indian Partnership Act or the Limited Liability Partnership Act, will be have to pay service tax on fees charged from corporates.

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