Indirect Tax Alert - June 2016

New notifications issued - service tax leviable under reverse charge on representational services provided by Senior Advocates

In terms of the Finance Act, 2016, w.e.f. April 1, 2016, service tax on "legal services" provided by senior advocates was made exigible to service tax under forward charge basis. However, various high courts have stayed the operation of such provision. In view of the above, the Central Government has issued three separate notifications i.e. 32, 33 & 34 (all dated June 6, 2016), amending the relevant provisions of law; thereby bringing the payment of service tax on "representational services" provided by senior advocates under reverse charge in the hands of the litigant, applicant or petitioner, as the case may be.