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Published on:
February 23, 2023
By
Paramita

Understanding GST on Individual Advocates, Senior Advocates  Firm of Advocates

Goods and Services Tax, commonly known as GST, implemented on July 1, 2017, has brought in significant changes in the taxation system of India. It is a tax that is levied on the supply of goods or services or both. GST has brought all the indirect taxes under one roof, simplifying the tax system and making it more transparent. There are different rates of GST, and it varies depending on the goods or services provided.

Individual Advocates, Senior Advocates, and Firms of Advocates are also liable to pay GST on their services. This article will discuss the GST implications on the legal industry and provide insight into how Individual Advocates, Senior Advocates, and Firms of Advocates are affected by GST.

GST on Individual Advocates

An individual advocate, as per GST norms, is a person who practices law in any court of law in India. According to the GST Act, an individual advocate is liable to pay GST on the services provided by him/her to his/her clients.

The GST on legal services provided by an individual advocate is 18% (9% CGST and 9% SGST). It is worth noting that this tax is not levied on the entire fee charged by the advocate. Instead, it is only levied on the fee charged as service charges, excluding the cost incurred on behalf of the client, such as court fees or stamp duty.

GST on Senior Advocates

Senior Advocates are advocates who have been designated as such by the Supreme Court or any High Court. The GST rules define a Senior Advocate as an individual who is a senior member of the Bar or is designated as such by the High Court or the Supreme Court.

Senior Advocates are also liable to pay GST on the legal services provided by them. The GST rate on the services provided by Senior Advocates is 18% (9% CGST and 9% SGST). It is worth noting that the GST is not levied on the entire fee charged by Senior Advocates, but only on the service charges, excluding the cost incurred on behalf of the client, such as court fees or stamp duty.

GST on Firms of Advocates

Firms of Advocates are also liable to pay GST on the services provided by them. A Firm of Advocates is defined as a partnership, association of persons or a registered company of advocates.

The GST rate on the legal services provided by Firms of Advocates is 18% (9% CGST and 9% SGST). It is worth noting that the GST is not levied on the entire fee charged by the Firm of Advocates, but only on the service charges, excluding the cost incurred on behalf of the client, such as court fees or stamp duty.

Conclusion

GST on legal services provided by Individual Advocates, Senior Advocates, and Firms of Advocates has been a significant change for the legal industry. The 18% tax (9% CGST and 9% SGST) is applicable only on the service charges and not on the entire fee charged by the service provider. It is essential for Advocates and Firms of Advocates to maintain proper records of their transactions, including the tax charged and paid, to avoid any penalties or legal complications in the future.

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Updated on:
March 18, 2023