All Services Provided By Advocates Subject To Reverse Charge Mechanism: Centre Clarifies [Read Corrigendum]

The Centre, through a corrigendum, has clarified that all legal services rendered by Advocates are taxable under the new Goods and Services Tax (GST) law under reverse charge basis. Earlier, it was only representational services that were subject to the RCM method.

The corrigendum states that the tax shall be paid on reverse charge basis for the “services provided by an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly.”

Further, it defines “legal service” as “any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority.”