Is reverse charge applicable on advocate services?

Advocates has privilege of not to pay GST on their output supply, while the tax on their supplies has to be paid by recipient under Reverse Charge Mechanism (RCM).

Is GST applicable on advocate fees?

GST is chargeable when a lawyer or law firm provides any kind of legal service to a business entity having an aggregate turnover of Rs. 20 Lakhs or more in the previous financial year. GST on legal services is also chargeable when a senior advocate provides legal service to another advocate or firm of advocates.

On which services reverse charge is applicable?


Sl. No. Provider of service Percentage of service tax payable by service provider
1 Any person who is located in a nontaxable territory Nil
2 Goods Transport Agency (GTA) Nil
3 An individual advocate or firm of advocates Nil
4 An arbitral tribunal Nil

Are lawyers exempt from service tax?

Considered the Petitioner’s submission that, the Central Government has issued several exemption notifications whereby services provided by an individual as an advocate or as a partnership firm of advocates by way of legal services are exempt from the charge of service tax.

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Is RCM applicable on chartered accountants services?

Introduction To Reverse Charge Mechanism (RCM)

Generally GST is payable by the provider of Service. For eg:- When service is provided by a Chartered Accountant to its client then in this case service provider i.e Chartered Accountant is liable to pay GST and comply with other general provisions of return filing etc.

What is reverse charge mechanism GST?

Generally, the supplier of goods or services is liable to pay GST. … Reverse Charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply.

What is reverse charge in GST with example?

Example – A trader who is registered in GST takes services of Goods Transport Agency (GTA) for Rs. 10,000. This service is listed under the reverse charge list therefore trader has to pay tax @ 18% on Rs. 10,000 on RCM.

Is Advocate income taxable?

Many of the lawyers opt to practice law. Income derived from practice is taxable under the head of ‘income from profession. … Under the scheme, professionals can file their return declaring 50% of their gross receipts as income (if the professional income is upto Rs.

Is Advocate income tax free?

As per law, advocates are exempt from paying service tax for services rendered to individuals.

Are advocates exempted from GST?

Advocates has privilege of not to pay GST on their output supply, while the tax on their supplies has to be paid by recipient under Reverse Charge Mechanism (RCM).

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Is GST applicable on CA services?

So all services provided by practising chartered accountants will be liable to GST @ 18 %. If the supply is intra-state, then 9 % CGST and 9% SGST will have to be charged and if the supply is inter-state, then 18% IGST.

Who are exempted from GST registration?

A business entity with an annual turnover less than Rs. 20 lakh is given exemptions from GST registration. But there are some special category states (Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand) where this threshold limit is Rs.

What is the limit for GST registration?

A business whose aggregate turnover in a financial year exceeds Rs 20 lakhs has to mandatorily register under Goods and Services Tax. This limit is set at Rs 10 lakhs for North Eastern and hilly states flagged as special category states.