Frequent question: Is service tax applicable on lawyers?

“It appears that despite knowing fully well that advocates are not liable to pay service tax or GST, notices continue to be issued to them by the GST Commissionerate.

Are lawyers exempted from tax?

Earlier, lawyers needed to file under ITR-4, but now lawyers can file under ITR-4 (Sugam) if they opt to file under presumptive taxation. They can file under ITR-4 (which is renamed as ITR-3 from FY 16-17), if they opt for normal provisions. If not, tax audit is applicable to them.

Who is exempt from service tax?

Any service that is provided or offered free of cost is exempt from service tax. Taxable services that are provided to diplomats and their family members for official purposes are exempt from service tax.

Are lawyers exempted from GST?

4. Services other than legal services provided by advocates / advocate firms are taxable as per normal provisions of GST Act.

Do lawyers pay tax?

Income tax is different from service tax. Lawyers have always had to pay income taxes, personal or corporate. If they don’t pay right income taxes, that’s because of evasion or availing of legitimate exemptions.

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What is the salary of tax lawyer?

The average salary of a tax attorney is $120,910 per year, according to the BLS. Salaries in the law field range from $58,220 to $208,000. Several factors may impact earning potential, including a candidate’s work experience, degree, location, and certification.

What is LLB taxation?

B. Com LLB with Specialisation in Taxation Laws is a 5-year undergraduate program. It’s a course that combines law and commerce while focusing on taxation laws. If you have an interest in commerce, tax and law – BCom LLB syllabus will prove to be highly valuable and informative during the journey.

Who is applicable for service tax?

Although Service Tax is required to be paid only when the aggregate value of services provided exceeds Rs. 10 Lakhs in a financial year, the service tax provider is required to apply for Registration for Service Tax within 30 days of his turnover exceeding Rs. 9 Lakhs.

What is the rule of service tax?

Service tax rules state that even though the service provider has to pay tax to the government, it is the receiver of the service that actually pays the tax. Currently, it stands at 15%. Note: Service Tax has been replaced by the Goods and Services Tax (GST) starting 1 July 2017. …

Which services are taxable under service tax?

1. Levy of service tax

Sr.No Service Category Date of Introduction
1 Advertising 01.11.1996
2 Air Travel Agent 01.07.1997
3 Airport Services 10.09.2004
4 Architect 16.10.1998

Are legal services taxable under GST?

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.

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Are legal services subject to GST?

(i) Retainer for the provision of legal services on an on-going basis Points to remember: GST is payable only on services provided after 1 July 2000; The costs agreement must enable the solicitor to charge GST in addition to the fees agreed.

Is GST applicable on legal services?

GST is chargeable on the legal services rendered by any advocate practicing on an individual basis or senior advocates or a firm of advocates to a business corporation with a yearly turnover up to Rs 20 lakhs.

What is the GST rate for legal services?

In case GST is applicable, the GST rate applicable on legal services would be 18%.

How do I get a tax advocate?

You can call your advocate, whose number is in your local directory, in Publication 1546, Taxpayer Advocate Service — Your Voice at the IRS, and on our website at www.irs.gov/advocate. You can also call us toll-free at 1-877-777-4778. 7.