Compliance KPIs for Lawyers & Other Professionals

Legal practice sits in an unusual GST regime — most other professionals raise GST invoices and collect tax. Advocates do not. Under Notification 13/2017, the entire tax burden on legal services to a business entity is shifted to the recipient under reverse charge. That single rule changes everything: registration thresholds, invoice formats, even whether a Senior Advocate's brief to a junior is taxable.

On the income-tax side, legal services are listed under Section 44AA(1) as a specified profession. The same trio applies that you saw in the architects blog: Section 44ADA presumptive at 50% up to Rs 75 lakh of gross receipts, Rule 6F bookkeeping, and a Rs 50 lakh tax-audit threshold under Sec 44AB(b). The KPIs below cover advocates, senior counsel, law firms (LLPs and partnerships), company secretaries, cost accountants, and management consultants.

1. Income Tax KPIs

The Income Tax Act 1961 — and the new Income Tax Act 2025 effective 1 April 2026 — keep the same pillars: pay advance tax on time, file an accurate return, and stay clean on cash. The KPIs below are the ones an audit officer pulls up first if your file lands on a scrutiny desk.

KPI / Compliance Item	Threshold & Action	Due Date	Source
Presumptive scheme u/s 44ADA	50% of gross receipts deemed as profit. Available if receipts are below Rs 75 lakh and cash is under 5%. Once opted out, locked out for 5 years.	ITR by 31 Jul 2027	Sec 44ADA
Tax audit u/s 44AB(b)	Mandatory if gross receipts above Rs 50 lakh AND no 44ADA opted. Receipts test, not turnover.	30 Sep 2027	Sec 44AB(b)
Advance tax	44ADA assessees can pay 100% by 15 March. Otherwise quarterly: 15 / 45 / 75 / 100 percent.	Quarterly	Sec 208–211
Cash receipt cap (269ST)	Cannot accept more than Rs 2 lakh in cash for a single brief, retainer or hearing fee. Penalty equals the amount.	Continuous	Sec 269ST
Cash payment cap (40A(3))	Cash payment above Rs 10,000 per day per vendor disallowed. Applies to court-fee couriers, junior counsel cash advance, copy contractor.	Continuous	Sec 40A(3)
Books under Rule 6F	Cash book, journal, ledger, bills above Rs 50 retained. Mandatory for specified professionals once receipts cross Rs 1.5 lakh in any preceding year.	Continuous	Rule 6F
ITR filing	ITR-3 / ITR-4 SUGAM (44ADA) / ITR-5 (firm or LLP).	31 Jul or 31 Oct 2027	Sec 139(1)

2. TDS KPIs

TDS payments are due by the 7th of the next month (March is 30 April), and quarterly Form 26Q or 27EQ returns drive Form 16 / 16A on TRACES. Late filing of the return alone costs Rs 200 per day under Sec 234E.

KPI / Compliance Item	Threshold & Action	Due Date	Source
Client side — fee deducted on you	Corporate / partnership clients deduct 194J at 10% on every fee bill above Rs 30,000. Reconcile each credit in 26AS / AIS before ITR — government clients in particular tend to file Form 26Q late.	Continuous	Sec 194J
194J — Junior counsel briefing fees, expert witness, legal researcher	10% on professional fees above Rs 30,000 in the FY paid to other professionals you engage.	7th of next month	Sec 194J
194C — Copy contractor, paralegal agency, courier, document scanning	1% / 2% on payments above Rs 30,000 single bill or Rs 1 lakh aggregate.	7th of next month	Sec 194C
194I — Chamber or office rent	10% on rent above Rs 2.4 lakh in the FY.	7th of next month	Sec 194I
194H — Referral commission to clerks, agents, marketing intermediaries	5% on commission above Rs 15,000 in the FY. Common at the litigation bar.	7th of next month	Sec 194H
Quarterly TDS return (Form 26Q)	Late filing of the return alone attracts Rs 200 per day under 234E.	31 Jul, 31 Oct, 31 Jan, 31 May	Rule 31A

3. GST KPIs

GST is the most data-rich compliance regime — every invoice you raise and every invoice you receive sits on the network. Use GSTR-2B, not 2A, as your reconciliation base from FY 2022-23 onwards.

KPI / Compliance Item	Threshold & Action	Due Date	Source
Legal services to a business entity (RCM)	100% reverse charge. The recipient pays GST at 18%. The advocate or firm does not charge GST on the invoice.	Continuous	Notification 13/2017-CT(R) Sl. 2
Legal services to non-business entity (e.g. an individual)	Exempt under Notification 12/2017. Most personal-litigation work for individuals falls here.	Continuous	Notification 12/2017-CT(R) Sl. 45
Senior Advocate to other advocate / law firm	RCM applies — the receiving advocate or firm pays GST on the brief fee.	Continuous	Notification 13/2017-CT(R) Sl. 2A
Other professionals (CS, CMA, management consultants)	Forward charge at 18% on the professional fee invoice. Not covered by the legal-services RCM.	Continuous	Sec 9(1) CGST
Registration threshold	Rs 20 lakh aggregate turnover. If 100% of supplies are RCM, registration is technically not mandatory — but most firms register voluntarily for record-keeping and to claim ITC on office rent / IT expenses.	Continuous	Sec 22 / 23 CGST
Court fees / stamp duty / out-of-pocket on behalf of client	Outside scope of GST if recovered as pure agent under Rule 33. Always show on a separate line with the receipt attached.	Continuous	Rule 33
Export of legal services (foreign clients)	Zero-rated supply. Need a fresh LUT every FY before 1 April.	Annual LUT	Sec 16 IGST + Rule 96A
GSTR-1 / 3B / 9 / 9C	Monthly or QRMP. Annual return if turnover above Rs 2 crore. Reconciliation if turnover above Rs 5 crore.	11th / 20th / 31 Dec	Sec 37 / 39 / 44

4. Profession tax (Maharashtra)

Profession Tax is a state levy run by the Maharashtra Goods & Services Tax Department. There are two registrations and most businesses need both — one for the owner, one for the staff.

Registration	Who needs it / what you pay	Due date	Source
PTEC (Enrolment)	For the proprietor, partner, director, LLP or company. Flat Rs 2,500 per year for most non-salaried professions and businesses.	30 June	MahaGST PT Act 1975
PTRC (Registration)	For employers paying salary above Rs 7,500 p.m. (male) or Rs 25,000 p.m. (female). Slabs: Rs 175 p.m. for Rs 7,501–10,000 (male); Rs 200 p.m. plus Rs 300 in February if salary exceeds Rs 10,000. Annual ceiling Rs 2,500 per employee.	Last day of the next month	MahaGST PT Rules

5. Bookkeeping and the filing system

Section 44AA of the Income Tax Act and Section 35 (read with Rule 56) of the CGST Act set the bookkeeping baseline. For most non-professional businesses, books are required if income is above Rs 2.5 lakh or turnover above Rs 25 lakh in any of the three preceding years.

Minimum books to keep

• Cash book, bank book, journal and ledger — daily, on accrual basis (Sec 145 read with ICDS).
• Sales register and purchase register — invoice-wise, with HSN/SAC and GST.
• Stock register — opening, receipts, issues, closing. Mandatory under CGST Rule 56(2).
• Bills, vouchers, e-way bills and delivery challans behind every entry.
• Fixed asset register, block-wise, with the date the asset was put to use.
• TDS / TCS certificates downloaded from TRACES.
• Brief register: matter-wise — court / forum, opposite party, fee agreed, advance received, court fees on behalf of client, balance.
• Pure agent ledger for court fees, stamp duty, vakalatnamas paid on behalf of clients, with original receipts in client's name.
• Bar Council enrolment certificate and annual subscription receipts.
• LUT acknowledgement on file every FY for foreign clients.
• For CS / CMA / management consultants — practice certificate from the relevant Institute and annual membership renewal receipt.

How long to keep them

• Income Tax: 6 years from the end of the relevant Assessment Year (Sec 149). For reopened or search cases, up to 10 years.
• GST: 72 months from the due date of the annual return for the year (CGST Sec 36).
• Companies and LLPs: 8 financial years (Sec 128 Companies Act 2013 / corresponding LLP rules).

6. Sector-specific compliance traps

The four mistakes our team sees most often when we take over books from another firm:

7. Annual compliance calendar (FY 2026-27)

Month	Compliance milestones
April	TDS payment for March (30 Apr); GSTR-1 / 3B for March; PT employee deduction.
May	Q4 TDS return Form 26Q (31 May); Form 16A; SFT-005 / 61A (31 May).
June	Form 16 to employees (15 Jun); Q1 advance tax (15 Jun); PTEC payment (30 Jun).
July	Q1 TDS return (31 Jul); ITR for non-audit cases (31 Jul); QRMP option last month.
August	Routine GSTR-1 / 3B; e-invoice review.
September	Tax audit report u/s 44AB (30 Sep); Form 10B / 10BB (30 Sep) for trusts; Q2 advance tax (15 Sep).
October	Q2 TDS return (31 Oct); ITR for audit cases (31 Oct); GSTR-9 prep starts.
November	ITR for transfer-pricing cases (30 Nov).
December	Q3 advance tax (15 Dec); GSTR-9 / 9C filing (31 Dec).
January	Q3 TDS return (31 Jan); books reconciliation for FY closing.
February	Stock-take preparation; PT special slab (Rs 300 in Feb).
March	Q4 advance tax (15 Mar); Annexure V for GTAs (31 Mar); books closure; year-end TDS.