Service Tax Liabiility on services provided by Advocates
Guest (Guest) 06 July 2009
Service Tax Liabiility on services provided by Advocates
Guest (Guest) 06 July 2009
However its restricted to certain services which includes Technical, Advisory etc.
Guest (Guest) 06 July 2009
Finance Minister Pranab Mukherjee brought lawyers under the ambit of service tax in the union budget for 2009-10.
"I propose to bring certain legal services under the ambit of service tax," said Mukherjee.
Guest (Guest) 06 July 2009
Advice, Consultancy or Technical Assistance provided in the field of Law. Exemption: Service Provider or Service Receiver is an individual.
Kiran Kumar (Lawyer) 06 July 2009
do u think this proposal will stand, it was tried earlier as well by Mr. Chidambram.
i dont think this proposal will pass through....
SANJAY DIXIT (Advocate) 06 July 2009
I think legal professionals providing legal advice to the companies are covered.
Swami Sadashiva Brahmendra Sar (Nil) 07 July 2009
Yes Dixit ji! legal professionals providing legal advice to the companies should be covered.
Advocates providing help to individuals render a social service . Their services can not be compared with pure business oriented services. Further , imposing tax on all legal advices will make the justice costlier.
Jatin Arora (Tax Advisor) 07 July 2009
do u think this proposal will stand, it was tried earlier as well by Mr. Chidambram.
i dont think this proposal will pass through....
Guest (Guest) 07 July 2009
This time it would b implemented especially considering the fact taht it specifically excludes those who are likely to face hardship from such implementation i.e. INDIVIDUALS.
That would b implemented this time, My view
Prakash Yedhula (Lawyer) 09 July 2009
A new sub-clause zzzzm has just been introduced to Section 65 (105) of Finance Act, 1994 that says:
'service tax on services or to be provided to any business entity, by any business entity, in relation to advice, consultancy or assistance in any branch of law excluding appearance before any court, tribunal or authority and the term 'business entity' has been defined to include association of persons, body of individuals, company or firm but not to include an individual'
According to the above, entire litigation activity is kept out of Service Tax.
This means, all fees received in connection with filing suits or appearance before Courts or Tribunals is outside Service Tax. That means, approximately 96% of all registered lawyers in the country are not touched by Service taxes. Obviously, the Central Government did not want to rattle the litigating community, what with the Central Government losing several high profile litigation on constitutionality of service taxes - in the last six months, it has lost out in various courts, litigation in the area of Shipping industry, Building rental industry and Mobile SIM sales.
However, the Government has set its sight on corporate lawyers. Office advice tendered outside of litigation is taxable. The catch again is, individual lawyers are not taxed. Only, firms, Association of Persons (AOP) or BOI are taxed.
Nearly every leading lawyer in the country happens to be a Solo Practitioner with many assistants. These individual lawyers also have a flourishing consultancy/advisory practice. Such consultancy/advisory practice is not touched by Service tax. Again, it appears that the Central Government didn't wish to incur the wrath of the top litigators in the country.
In all, litigating lawyers are outside the service tax net while office/corporate lawyers must now register themselves and pay service taxes.
Coutesy: K.V.Dhananjay, Advocate
Rajkumar (Advisor) 26 July 2009
Why Doctors rendering service are not covered by service Tax. It shows the fear of life by the politicians.
R.Rajkumar
jayachandran (advocate) 31 July 2009
jayachandran (advocate) 01 August 2009
the heading "Advocates Taxable" is not proper
The service rendered by law/legal firms to corporates is taxable under the new proposed
Service Tax.
arorars_05 (TAXATION CONSULTANT AND CORPORATE LAWYER) 10 August 2009
Service Tax is imposed on Corporate Law Firms i.e Partnership Firms only. In case of indiviual lawyer providing service to its clients weather individual or Corporate clients Service Tax is not applicable on it.
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