Neeraj Joshi (Accounts executive) (97 Points)
06 May 2016
Mir Irshad Ali
(Partner)
(192 Points)
Replied 06 May 2016
Service Tax on Reverse Charge basis in respect of consultancy/legal advice is applicable in terms of Notfn. No. 30/2012-ST [I(A)(iv) only on services provided or agreed to be provided by an individual advocate or a firm of advocates by way of support services, otherwise the service tax on such services is payable by the service provider.
However, since the person providing Sales Tax consultancy is an advocate, it is debatable as to whether Service Tax is payable under Reverse Charge Mechanism.
Even if the service tax is paid by the service reipient under RCM, the service appears to be correctly covered under definition of input services as "legal service" and cenvat credit can be availed.
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