As per law, advocates are exempt from paying service tax for services rendered to individuals.”
Are advocates exempted from income tax?
As per the new scheme of presumptive taxation for professionals (Section 44ADA), a non-practicing lawyer can’t opt for a such scheme because it is only for practicing legal professionals. If the lawyer is on payroll of a law firm, or is a partner of a law firm, then his income will be treated as ‘salary.
Does advocate pay tax?
As per law, advocates are exempt from paying service tax for services rendered to individuals.
Is Advocate exempted from GST?
Advocates has privilege of not to pay GST on their output supply, while the taxes on their supplies has to be paid by recipient under Reverse Charge Mechanism (RCM).
Is RCM applicable on advocate fees?
Yes, RCM is applicable on services by an advocate to a business entity. You need to show it in your GSTR-3B and claim ITC. Fees paid to CA is not covered under RCM as of now.
What is the salary of income tax lawyer in India?
In terms of salary that a taxation lawyer can expect, tier 1 law firms usually offer an average salary of Rs 10-12 lakh to freshers and the starting salary in a tier 2 firm is around 6 lakh.
What deductions can lawyers claim?
- parking fees and tolls, if it is a work-related trip between two places of work or an alternate workplace on the same day.
- fares, and.
- any other relevant incidental expenses.
Why advocates are exempted from GST?
When the service provided is covered under Reverse Charge Mechanism (RCM), the advocate is exempted from GST Registration.
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.
How do I become an income tax advocate?
Dear Suruchi, you can pursue Diploma in Taxation Law. The minimum eligibility criteria is that you should have passed your 10+2 from any recognised Board. If you are a graduate, then you can pursue LLM.in Taxation Law.
Which services are exempted GST?
All the services related to agriculture including harvesting, cultivation, supply, packaging, warehouse, renting or leasing of machinery, etc. are exempted from GST. However, this does not include the rearing of horses. Transportation of individuals via public transport, metered cabs, auto-rickshaws, metro, etc.
Is GST applicable for legal services?
In case GST is applicable, the GST rate applicable on legal services would be 18%. What if Legal services are Exported ? As per Notification No. 13/2017 – Central Tax (Rate), RCM is applicable on legal services provided to Business Entity.
What is RCM GST?
Reverse Charge in GST is the amount of GST that the recipient has to pay directly to the Government & not through the supplier, because such situations, goods or services were specified by the Government to fall under the Reverse Charge Mechanism.
On which expenses RCM is applicable?
What are the Profit & Loss items which might attract GST under RCM
- Commission payments.
- Printing and stationery.
- Repairs and Maintenance.
- Office Maintenance.
- Vehicle maintenance.
- Computer maintenance.
- Legal Fees.
Can RCM be paid through ITC?
The ITC is not available for the reverse charge payment to the authority. The composition scheme registered individuals also come under the reverse charge, well there will be no credit of RCM be availed. The reverse charge mechanism is applicable to payments made in advance also.
What is the GST rate for legal services?
In case GST is applicable, the GST rate applicable on legal services would be 18%.