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Tds and service tax on lawyer fees

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Querist : Anonymous

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Querist : Anonymous (Querist)
25 August 2012 Sir

We had appointed a lawyer for appearing on the appeal for a case on behalf of our company in the year 1999. We had made the partial payment of the fees during 2001 and the judgement has come in the year 2010. Last year in September 2011 the lawyers had raised bill for the remaining amount which is Rs 30000. Now we have to make the payment of Rs 30000 to him.I have the following questions in my mind

Q1. Whather TDS will be deducted by us and if yes what is the percenatage?

Q2. Are we laible to pay service tax on the bill as per new mechansism of reverse charge recently introduced?

The bill is in the date of september 2011 and we will make the payment during Aug 2012 and services were received during 2010.

Kindly help

25 August 2012 Q1: 10% of 30,000
Q2:Service tax is dependent on payment not on delivery of service, hence liable.



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