Page 91 - CA Final GST

Badlani Classes

Services supplied to individuals who were not carrying on business-Since services are
provided to non-busi9ness entity, the same is exempt vide Entry 45 of Notification No.
12/2017-CT(Rate).
Que. Compute taxable value legal services from the following receipts (excluding tax) of Mr.
A individual advocate-
Acting as a member of an arbitral tribunal `5lakh
Services to a firm of advocates providing legal services in the matter `4 lakh
pertaining to a corporate house having turnover of `200 crore
Services to an individual for his personal litigation `5lakh
Services to an individual for litigation relating to his sole proprietary `2 lakh
business having turnover of `25 lakh during preceding F.Y.
Services to a company having turnover of `10 lakh during preceding F.Y. `50,000
but turnover in current F.Y. (year in which services are provided) is `22
lakh
Representational services before tribunal in relation to a matter pertaining `15lakh
to a corporate house with turnover of `5000 lakh during preceding F.Y.
What would be your answer if Mr. A is a senior advocate?
Ans. Computation of taxable value
Mr. A is Mr. A is
not senior Senior
adv. Adv.

1- Acting as a member of an arbitral tribunal – Not Taxable Taxable
exempt [As per CBIC, they are taxable under reverse under under
charge if such services involve business entity having RCM RCM
turnover exceeding `20 lakh during the preceding F.Y.
2. Services to firm of advocates (in case of senior Exempt Reverse
advocate, these are representational services through a charges
firm of advocates; hence, service recipient would be tax
deemed to be such corporate house and since turnover payable
of corporate house exceeds `20 lakh in preceding F.Y., by
services are taxable under reverse charge) corporate
house
3. Services to an individual for his personal litigation- Exempt Exempt
Services to person other than a business entity are
exempt:
4. Services to an individual for litigation relating to his Taxable Taxable
sole proprietary business having turnover of `25 lakh – under under
Sale proprietary business is a business entity. RCM RCM
5. Services to a company having turnover of `10 lakh Exempt Exempt
6. Representational services before tribunal in relation to Taxable Taxable
a matter pertaining to a big corporate house with under under
turnover of `5000 lakh RCM RCM

Que. Briefly explain as to who is the person responsible to pay GST in the following cases:
(i) Legal services are provided by Senior Advocates to business entities.
(ii) Representational services are provided by Senior Advocates to any business entity.
Where contract for representational services provided by the Senior Advocates to any
business entity has been entered into through another advocate or firm of advocates.
Ans. The position of law is as follows-
Nature of service Nature of Business Entity Person liable to pay
tax
Turnover upto`20 Any SP SR Page90
lakh during other
preceding F.Y. case

Central Goods & Services Tax Act, 2017