MANISH MALHOTRA & ASSOCIATES (2M)

GST on Legal Services: Understanding the Tax Treatment of Advocates, Law Firms and Legal Companies Businesses often assume that every professional service attracts GST in the same manner. However, legal services operate under a unique framework where the liability to pay GST may shift from the service provider to the recipient under the Reverse Charge Mechanism (RCM). In practice, this is one of the most frequently misunderstood areas during GST audits and internal compliance reviews. Many companies fail to discharge GST under RCM on legal fees, while some advocates unnecessarily obtain GST registration and charge GST on invoices despite the law providing otherwise. This article examines the GST implications on legal services provided by individual advocates, senior advocates, firms of advocates and legal consultancy companies. Legal Services Under GST – What Does the Law Cover? The term "legal service" has been defined under Notification No. 12/2017-Central Tax ...

Section 393 – Tax to be Deducted at Source (Complete Provision) Section 393 provides provisions for deduction of tax at source on various payments including payments to residents, non-residents and other specified persons. Section 393(1) – Payments to Resident Tax shall be deducted: On entire amount if threshold exceeded At prescribed rate At time of credit or payment (earlier) Subject to sub-sections (4), (5), (6), (8), (9) TABLE – PAYMENTS TO RESIDENT 1. Commission or Brokerage Insurance Commission – Rate: Rates in force | Threshold: ₹20,000 Other Commission/Brokerage – Rate: 2% | Threshold: ₹20,000 2. Rent Non-specified person – Rate: 2% | Threshold: ₹50,000 per month Specified person : Machinery/Plant – 2% Land/Building/Furniture – 10% Threshold: ₹50,000 per month Note: Deduction at last month or tenancy month (credit/payment whichever earlier) 3. Immovable Property Sale consideration – 1% of higher of ...

source: PIB   Posted On: 08 APR 2026 9:37AM by PIB Delhi Pradhan Mantri Mudra Yojana (PMMY) — completes 11 Years of empowering Small and Micro Entrepreneurs PMMY instrumental in reshaping the credit landscape for MSMEs and countless individual entrepreneurs in the country: Union Finance Minister Smt. Nirmala Sitharaman PMMY provides a platform for small entrepreneurs to access loan support from banks, NBFCs, and MFIs as it drives credit inclusion: MoS Sh. Pankaj Chaudhary Mudra Yojana facilitates seamless access to collateral-free institutional credit up to ₹20 lakh for non-corporate and non-farm income-generating activities PMMY has disbursed over ₹40.07 lakh crore through 57.79 crore loans, strengthening the credit ecosystem for small and micro enterprises The Pradhan Mantri MUDRA Yojana (PMMY) launched by Prime Minister Shri Narendra Modi on April 8, 2015, is marking 11 years of success in strengthening India's grassroots entrepreneurs. This initiative has been des...

Income Tax SAKSHAM NUDGE Campaign: 63,000 Restaurants Asked to Update Tax Returns The Income Tax Department has launched the SAKSHAM NUDGE Campaign after detecting possible tax evasion patterns in the Food & Beverage sector. Using advanced artificial intelligence and analytics tools, authorities examined transactional data from thousands of restaurants and identified significant discrepancies between actual sales and income reported in tax returns. The campaign aims to encourage voluntary compliance by prompting businesses to correct errors by filing Updated Returns under Section 139(8A) of the Income Tax Act . Official Press Release Income tax Department carries out nation-wide verification exercise on restaurants suppressing turnover IT Department conducted a nationwide survey on 8th March 2026 on 62 restaurants across 46 cities in 22 States, revealing suppression of sales of around Rs. 408 crore IT Department continues to emphasise voluntary compliance and a ...

Start Your Business in India Without Investment (A step by step Guide) Complete guide to starting a business in India without investment including MSME registration, GST rules, accounting, and getting your first clients. Many people believe that starting a business requires a lot of money. However, the reality is that you can start a business in India with almost zero investment , especially if you start with a service-based business . This guide explains how anyone can legally start a business with minimal cost. The only investment required is your time, knowledge and skills . Quick Insight: Thousands of freelancers and professionals in India start their business every year without capital by offering skill-based services. Table of Contents Product or Service Skills – Your Real Capital Legal Recognition MSME Registration Opening a Bank Account GST Registration Accounting Registered Office Digital Presence Getting First Client Step-by...