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Rcm on legal services

jyoti (student) (36 Points)

24 September 2019

If a business entity has hired a senior advocate and that senior advocate hired another sr. advocate then who will bear gst , if the recipient sr. advocate has turnover more than 20lacs/ 10 lacs?

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9 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 24 September 2019

The Business entity will pay GST under rcm basis...

Advocate to Advocate service is exempted...

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jyoti (student) (36 Points)
Replied 24 September 2019

Its a senior advocate

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 24 September 2019

Advocate service is exempted to Advocates...

jyoti (student) (36 Points)
Replied 24 September 2019

Exemption is in case of services by advocate other than senior to another advocate

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 24 September 2019

No...

Advocate service is exempted if it's to advocates (senior or others).

But, The Service is Taxable (rcm) in the hands Service recipient...

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jyoti (student) (36 Points)
Replied 24 September 2019

I dnt think so.....exemption is only if other than snr provide service to other advocates.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 25 September 2019

Agree with Mr Raja ji

As per Entry 45 of Notification 12/2017 CT(r)

Services provided by Senior Advocate Exempted :

(i) any person other than a business
entity; or
(ii) a business entity with an aggregate
turnover up to twenty lakh rupees (ten
lakh rupees in the case of special
category states) in the preceding
financial year

Hence As per Above extract from Notification 12/2017 CT (r) , Senior Advocate to Senoir Advovate is exempted.

jyoti (student) (36 Points)
Replied 25 September 2019

BE includes any person who is involves in business as per definition given in section 2 (17) of the CGST Act, 2017 , which is why services given by senior to other advocates whether individual or firms are taxable.
@ pankaj rawat