Sunil Datte (Engineer) 14 October 2012

Is service tax liable to pay

An advocate running a consultancy firm (where he/she provides various services, like Tax, BOA, Legal Counselling and the turnover is less than 9 lakh, is he/she liable to register and pay for service tax in this case.

Your advice is appreciated(QFCACI)

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6 Replies

Sivadas Chettur (Chartered accountant) 14 October 2012

There is an exemption for small service providers whose gross receipts are less than 10 Lac per year. Apart from this I think the services rendered by an individual advocate is not liable to tax . I shall confirm that later.

Sivadas Chettur (Chartered accountant) 14 October 2012

Yes. An advocate in practice as an individual is exempt from ST vide Mega exemption notification NO 25/2012 dt 20-06-2012. So you need not worry about ST at all.

Ashok Jogalekar (AGM-Indirect Taxation) 15 September 2013

The individual / firm of advocate/s is exempted from payment of service tax, but, the receiver of the service is liable to pay service tax under reverse charge mechanism.

vipin gaur (Asssistant manager admin) 19 November 2013

I want to know that Is there any service tax applies on EDC and IDC in property.

Thanks

Ashok Jogalekar (AGM-Indirect Taxation) 20 November 2013

With regard to applicability of Service Tax on EDC / IDC charges following is position:

Sl. NO	Charges	Rate of Service tax
	EDC/IDC
1	On Actual Payment Basis	Not Taxable (Provided Development charges , to the extent they are paid to state Government, or local bodies)
2	On Adhoc basis without disclosing actual charges	Full amount is Taxable
3	Actual Charges plus own service charge	Only own service charges are taxable

Harendra Kumar (A Practicing Lawyer) 02 December 2013

In my view A Individual & A Partnership Firm not eligible to pay and collection in way of Advocacy & consultancy and the receiver of the service is liable to pay service tax under reverse charge mechanism.