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Service tax, q and ans.

CA Navin Jain (MANAGER (FINANCE & ACCOUNTS)) (11768 Points)

06 August 2012

Q.Whether service Tax is applicable, if service received by individual in personal capacity from advocate?

Ans. As per Notification no. 25/2012 dated 20-6-2012, any legal service provided by an advocate/firm of advocates to any person other than business entity is exempt from Service tax.

So any legal service provided by an advocate to an individual in personal capacity is exempt from Service tax.

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12 Replies

Ajay Mishra (Company Secretary) (74337 Points)
Replied 06 August 2012

Thanks.......for updating.......

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sjain (Pursing CA Final) (40 Points)
Replied 06 August 2012

Thanxs ..................for Updating ...

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 06 August 2012

Thanks for the update

Ramesha.M (Accountant) (800 Points)
Replied 06 August 2012

Dear sir,

Thanks four update

SANYAM ARORA (“It's hard to beat a person who never gives up.”) (20173 Points)
Replied 06 August 2012

Thanks sir for updating.

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CA CS Amit S. Kedia (KKCL-KILLER JEANS) (6920 Points)
Replied 06 August 2012

Dear Navinji,

What about sitting fees paid to advocate -non executive director?? Is it chargeable for service tax

further, If the Service recipient is Specified person then does it required to pay under reverse charge mechanism??

Regards

Amit kedia

CA Navin Jain (MANAGER (FINANCE & ACCOUNTS)) (11768 Points)
Replied 06 August 2012

@ Amit

1. Yes sevice tax is applicable.

2. Yes, Reverse Charge Mechanism is applicable. i.e. 100% service tax will be deposited by service receiver.

CA CS Amit S. Kedia (KKCL-KILLER JEANS) (6920 Points)
Replied 06 August 2012

Earlier there was a circular in which it was clarified that sitting fees is not a service but now because of the introduction of negative list position has been changed??

CA CS Amit S. Kedia (KKCL-KILLER JEANS) (6920 Points)
Replied 06 August 2012

None of the non executive director raise his bill for sitting fees as it is compensation for attending the meeting which is required to attended by the NED.

What if it is an MBA NED and not giving any bills for sitting fees but covered under tax net ??

RENGARAJ R.K (ADVOCATE) (7557 Points)
Replied 06 August 2012

Executive directors are treated as employees and hence they will not be covered. But, for NEDs surely it will be covered. A new notification is being prepared and expected to be released within this month for removal of doubts.