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Help me please on legal consultancy services

Ankur (na) (252 Points)

22 October 2011

hello friends ,

can anybody please tell me whether changes made in the provisions of Legal consultancy services by finance act 2011 be applicable for november 2011 ipcc exams or not since these are not mentioned in RTP and these took place before 30th april, 2011?????

urgent please help.

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CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 23 October 2011

hie Ankur

Yes there are amendment on this services ...

Previously One Business entity providing such services to another Business entity was taxable but now and individual providing representational sevices to another busines enity is TAXABLE SERVICES..

You can review this for more clearly.

LEGAL CONSULTANCY SERVICES

‘Legal Consultancy Service’ means services provided

· By a business entity, to any person, in relation to advice, consultancy or assistance in any branch of law,

in any manner.

· Representational Services provided by any person to a business entity

· Services provided by arbitrators to business entity

Explanations

1. “Business Entity” includes an association of persons, body of individuals, company or firm, but does not

include an individual.

2. Charitable Institution is not a business entity.

3. Arbitrator is a private, neutral person chosen to arbitrate a disagreement. An arbitrator could be used to

settle any non-criminal dispute and many business contracts make provision for an arbitrator, as it is

substantially less expensive than resoling it through a court of law.

4. Services provided by individuals to other individual will remain outside the levy. Thus, services provided

by an individual advocate to an individual would be outside the scope of the taxable service. Also, legal

services provided by an individual to a business entity other than representation service is not taxable.

5. Any individual in association with another individual who is conversant with any branch of law can

provide the said service in any manner by forming a partnership. For e.g. if two individuals (who are not

advocates) form a partnership firm and provide services related to patent law or undertake tax

compliance work of corporate clients, they are also liable to service tax.

Summary

Individual to Individual Not Taxable

Individual to Company / Firm / LLP (Representation Service) Taxable

Individual to company/ Firm/ LLP (Other than Representation Service) Not Taxable

Company/ Firm/ LLP to Individual (Consultancy Service) Taxable

Company/ Firm/ LLP to Individual (Representation Service) Not Taxable

Company/ Firm/ LLP to Charitable Institution (Representation Service) Not Taxable

Company/ Firm/ LLP to Charitable Institution (Consultancy Service) Taxable

Company/Firm/ LLP to Company/ Firm/ LLP Taxable

All the Best

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CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 23 October 2011

Hey Check this also It will be helpful for you

Attached File : 594213 855188 specific services.pdf downloaded: 221 times

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Help me please on legal consultancy services

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