Vakil & Vakil, a firm of lawyers and solicitors rendered legal advice to Bipin, an architect and NPA Ltd., an advertising agency, during the month of October, 2015. Both Bipin and NPA Ltd. are not entitled for small

In case of taxable services provided or agreed to be provided to any business entity located in the taxable territory by an individual advocate or a firm of advocates by way of legal services, person liable to pay service tax is the person receiving such services i.e. would be taxable under Reverse Charge Mechanism. Therefore, service tax will be payable by service receivers, Mr. Bipin and NPA Ltd, irrespective of whether the legal advice is sought from Vakil and Vakil, a firm of lawyers or from Mr. Ashish an individual lawyer, irrespective of their turnover. Note: Services provided by an individual advocate or a partnership firm of advocates by way of legal services to inter alia a business entity with a turnover up to ₹10 lakh in the preceding financial year are exempt from service tax. In the given case, turnover of services of both Mr. Bipin and NPA Ltd. is more than ₹10 lakhs in the preceding financial year as they are not entitled to small service providers exemption in the said financial year and hence, legal services provided by Vakil and Vakil (firm of advocates) or Mr. Ashish (individual lawyer) during October, 2015 will not be exempt from service tax.