Lawyers Escape Service Tax Net

The government on Wednesday added services by lawyers and 13 other items to the list of services exempt from the 12% tax, as the nation migrates to a more comprehensive taxation of services from July 1 when all but a few listed ones will come under the tax net. The wider list is in addition to the ‘negative list’ of 17 services that remain unchanged.

The expanded list has included the services rendered by advocates to other advocates and to business entities up to a turnover of R10 lakh. The same benefit is also extended to a firm of advocates. The negative list of services had not spared lawyers from service tax earlier. Unlike the ‘exempt list of services’, the negative list of 17 services that are also outside the purview of service tax require Parliamentary nod for any revision.

Financial Express, New Delhi, 21-06-2012