NEW DELHI: The tax department today clarified that legal services provided by advocates are covered under GST but the liability to pay the tax is on the client.
After the Delhi High Court sough clarification whether legal services provided by advocates and law firms will be covered by the reverse charge mechanism under the Goods and Services Tax (GST) regime, the CBEC issued a statement saying, “There is no change made in taxation of legal services in the GST era.”
Legal services, including representational services, provided by advocated are covered under reverse charge of GST, it said.
Reverse charge means the liability to pay tax is on the recipient of goods/services instead of the supplier. (AGENCIES)
Follow our WhatsApp channel