(i) Advance for the continued provision of legal services Conclusion: It is also clarified that Communication No 13/2017 – Central tax (payment) of 28.6.2017 (reference number 2) provides, inter alia, for the following services in the context of the reverse charge procedure, as follows: `Services provided by a private lawyer, including lead lawyer, representing a court or public authority, directly or indirectly for a lawyer in the tax jurisdiction, even if the contract for the provision of such a service was entered into by another lawyer or law firm or by the provision of legal services to a commercial entity`. The above provisions make it clear that if legal services are provided by a single lawyer (including senior counsel) or law firm for a commercial entity, in this case under the reverse charge mechanism, GST must be paid by the business entity for that transaction. Finally, the applicability of the GST to legal services can be summarized as follows: there should be two categories of lawyers, namely senior lawyers and other lawyers. A lawyer may be appointed as lead counsel with his or her consent if the Supreme Court or a Supreme Court considers that he or she deserves such an award on the basis of his or her expertise within the Bar Association or his or her particular knowledge or experience in the field of law. (3) Senior lawyers shall be subject to such restrictions as the Bar Council of India may impose in the interest of the Bar Association in the course of their practice. (4) A lawyer of the Supreme Court who was senior counsel of the Supreme Court immediately before the date of appointment is deemed to be senior counsel for the purposes of this Division. The definition of legal services has been given in entry 2 (zm) of the notification number. 12/2017 – Central tax rate of 28.06.2017, reproduced below: There is an exemption from GST payment on attorneys` and office fees. Only if they provide their services to a person and not to a commercial entity. 2. The first part concerns the analysis of the wording of the agreement.

The second question is partially answered by Article 6 of the Transitional Law, which provides: (4) The provision or acquisition of services takes place at the time of the provision of services. (5) The delivery or acquisition of another article occurs when the article is exported or made. The provision of the Goods and Services Act GSTD 2000/3 of the ATO, which states: (4) For the purposes of the Transitional Act, we consider that the services were provided to the extent that: A party not registered for GST purposes is entitled to claim GST for costs and expenses because it is unable to: recover GST from the Inland Revenue Department. However, that party must inform the court in advance so that the court can take it into account in its award. In summary, it is crucial for law firm management to understand and determine if there is an agency relationship with their clients. In addition, they must determine the nature of their client`s relationship with suppliers where the law firm can cover costs so that the appropriate GST treatment can be applied. These measures are important enough to be applied correctly to ensure that the client (if necessary) and the legal practice of the ATO report correctly. This will help manage the company`s cost recovery that is both compliant and does not disadvantage its customers or compromise the company`s profits. An area of often misunderstood legal practice is whether GST can be invoked when making payments and whether it should be collected when collecting legal payments.

A frequently asked question is whether GST should be applied to the full value of the payment or whether the payment should simply be charged, including the GST collected by the original supplier, without the addition of GST being applied by legal practice. Misapplying the GST can become a costly mistake for customers, especially if the client is not registered for GST and therefore cannot claim GST from the Australian Tax Office (ATO). (iii) Contingency cost agreements This is a difficult area in which work will extend beyond 1 July 2000. There are two main challenges: (i) Advance for the Ongoing Provision of Legal Services Considerations : The provision of legal services by the administrator of the personal legal aid plan is exempt from tax. The reverse charge procedure provided for by the statutory goods and services tax and the legal services mechanism imposes the tax liability on the beneficiary. The Goods and Services Tax on Legal Services received by the client is paid and remitted directly to the government by the recipient of the service in accordance with subsection 9(3) of the Central Goods and Services Tax Act, 2017 (pdf).