The tax department on Saturday clarified that legal services provided by Advocates are covered under Goods and Service Tax (GST) but the liability to pay the tax on the client.
After the Delhi High Court sought a clarification whether legal services provided by Advocates and law firm will be covered by the reverse charge mechanism under the GST regime, the Central Board OD Excise And Custom (CBEC) issued a statement saying” There is no change made in taxation of legal services in the GST era”. Legal services, provided by advocates are covered under reverse charge of GST, it said.
Legal services CBEC said” has been defined to mean any services provided in relation to advice, consultancy or assistance in any branch of law, in any manner and include representational services before any court, tribunal and authority.
This applies to ” an individual advocate including a senior advocate and a firm of advocates” legal services provided by either of them are liable for payment of GST under reverse charge by the business entity. the statement said.
It therefore follows that legal services, which include representational services, provide by advocates are under reverse charges.