07 December 2012
Advocate will not be liable for service tax in any case. However, the individual may be liable for service tax under reverse charge if he is ordinarily carrying out any activity relating to industry, commerce or any other business or profession and his turnover exceeds Rs. 10 lakhs in the preceding financial year.
08 December 2012
Clause 7.6.1 of education guide on service tax issued by CBEC dated 20/06/2012.
Advocates can provide services either as individuals or as firms. Legal services provided by advocates or partnership firms of advocates are exempt from service tax when provided to the following: • an advocate or partnership firm of advocates providing legal services (same class of persons) • any person other than a business entity • a business entity with a turnover up to rupees ten lakh in the preceding financial year
However, in respect of services provided to business entities, with a turnover exceeding rupees ten lakh in the preceding financial year, tax is required to be paid on reverse charge by the business entities. Business entity is defined in section 65B of the Finance Act, 1994 as ‘any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession’.
You yourself can interprete the clause and get your answer. Thanks
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