Tax Payment on Behalf of Client

I am a lawyer, recently started practice in tax laws, my clients are paying their tax from my account, there will be any complications for the same transactions.

or do I need do GST registration? but my actual receipts are less than 20 lakhs,

My total receipts 50 lakhs (including client tax)

Tax Paid 35 Lakhs 

remaining is my receipts and on which I have paid the income tax under presumptive scheme.

Thank you in advance for your help.

 

Replies (1)

For GST purposes, only your professional fees count toward your turnover threshold, not the tax money you handle for clients. Legal services provided to businesses generally fall under the Reverse Charge Mechanism, where the client pays the tax. For Income Tax, ensure you only report your professional fees as gross receipts under the presumptive scheme, keeping client tax payments strictly as pass-through transactions in your accounts to avoid inflating your income.

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