1.My client(Hotel) has paid consultancy charges and Internal audit fees to me and now the client(Hotel) has received notice from ST department demanding to pay service tax under Reverse Charge Mechanism.
20 August 2014
If you have provided consultancy services as an advocate to your client ,then service tax needs to be paid by your client under reverse charge.(Notification No.30/2012)Pleas note that “Legal service” means “any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority;”
As far as internal audit fees is concerned,i doubt if the service tax department has considered it s security service.As per my opinion service tax is not payable under reverse charge on internal audit fees.
CAclubindia
