05 January 2009
We have received a bill from a foreign Advocate firm for preparing the contract between our company & a foreign comapny. We have made him payment also.
Service Provider: - Foreign Advocate firm Service provided at – out of India Payment made by – our company (a domestics company)
Will this come under the preview of IMPORT OF SERVICE? Are we liable to pay service Tax on the same?
05 January 2009
In india there is no service tax payable on services provided by a Lawyer , therefore , in my opinion there is no service tax payable in case of reverse charge also u/s 66A.
05 January 2009
Confining my reply to taxability of advocate services, I too note that there is no Service Tax on servcies rendered by Advocates as may be noted from the following:
"After one of his recent budgets, a shrewd reporter flicked our FM by asking why he did not impose service tax on advocates? He further embarrassed by asking it because both he and his wife are themselves illustrious advocates. Our quick witted FM shot back saying that he is yet to come across an advocate doing any - service - to attract any service tax."- Source: http://in.rediff.com/money/2008/feb/04budget2.htm