Dear Mr. Aravinthan,
Do you mean to say that it will be difficult to collect service tax crom lawyers? Certainly not.
From 1.5.2011 what is sought to be taxed by way of service tax is only when any Advocate renders any representational services to any business entity, before any court, tribunal or authority.
The business entity is expected to pay for the services only through cheque. Otherwise its expenses paid through cash will not be allowed as business expenses by the Income Tax Department.
Thus if it pays through cheque, naturally it has to get an invoice from the lawyer. The lawyer while raising the invoice has to include the service tax element. The company will have to naturally pay the fees including the service tax element.
Having received the service tax component from the company/business entity, the lawyer cannot keep it with himself without remitting the same to the Government. If does not remit, then he will expose himself to all the penal consequences. Therefore, where is the difficulty to collect service tax crom lawyers? More over the lawyers have to get themselves registered with the service tax department as well.