SHAH DHANDHARIA & CO.

Chartered Accountants

ST Update: 06.06.2016

SERVICES BY SENIOR ADVOCATE UNDER RCM

Through Finance Bill 2016, Government dared to touch beehive by
differentiating between services provided by other Advocates and Senior
Advocates who are providing Legal Services, and thereby bringing Senior
Advocates under forward charge for applicability of service tax from
01.04.2016 vide notification no 09/2016-ST, but before the battle starts
government has accepted the defeat and put down all swords. The
amendment didnt even saw first light of sun and before the actual war is
fought, Senior Advocates are declared to be winners and were again freed
from all service tax applicability.

Who are Senior Advocate:

Section 16 of ADVOCATES ACT, 1961: Defines Senior and other advocates.
as

Section (2) An advocate may, with his consent, be designated as senior

advocate if the Supreme Court or a High Court is of opinion that by virtue of
his ability standing at the Bar or special knowledge or experience in law he is
deserving of such distinction.

From the above definition, we can easily understand who are Senior
Advocates and need no further introduction. The liability of discharging
service tax is now fasten on Business Entities who are having turnover
exceeding 10 Lacs in preceding financial year. However individuals who
receive services from any advocate including senior advocates are kept out of
service tax net. The expected amendments were carried out vide recent
notifications 32/2016-ST, 33/2012-ST & 34/2012-ST dated 06.06.2016.
B/302, ANAND VIEW SOC., NR SHAHIBAUG RLY. CROSS., Ahmedabad, Gujarat, India 380004.
Contact Details : (M) - 9327077643,
(Mail) pravin@sdco.in,
Website: www.sdco.in

SHAH DHANDHARIA & CO.

Chartered Accountants

It is to note that the recent amendments have not been done with
retrospective date i.e. 01.04.2016, so for the period from 01.04.2016 to
05.06.2016 the taxes will be collected and paid by Senior Advocate, which
will be very dubious position. Hence Business Entities who have availed
services of Senior Advocates are requested to discharge the service tax
liability from 01.04.2016 itself.

For any further clarification / suggestion you may please feel free to contact
us.

Regards,
For, Shah Dhandharia & Co.
Chartered Accountants
SD/CA Pravin Dhandharia.
[ Partner ]
-----------------------------------------------------------------------------------------------Disclaimer:
The write-up is solely intended for private circulation only. This letter is
intended to provide you a quick glimpse of the recent changes. It is neither
exhaustive nor meant to be used to interpret any provision nor can be
treated as legal opinion in any manner. For the sake of easier understanding
legal texts have been avoided in the writing of this letter, which may impact
the precise understanding sometimes. The wordings used in the statutory
provisions and the notifications should be relied upon which alone have the
legal standing.

B/302, ANAND VIEW SOC., NR SHAHIBAUG RLY. CROSS., Ahmedabad, Gujarat, India 380004.
Contact Details : (M) - 9327077643,
(Mail) pravin@sdco.in,
Website: www.sdco.in