Stay on lawyers paying service tax

The Delhi High Court today issued stay on a notification of the central government regarding imposition of service tax on lawyers. Chief Justice Dipak Misra and Justice Sanjeev Khanna asked the government to file a reply within two weeks and listed the case for hearing on May 23. The notification was to be implemented from May 1.

Earlier on March 24, lawyers of Delhi High Court Bar Association had gone on strike protesting against the imposition of service tax on the lawyers in the new budget presented by the finance ministry as well as the Legal Practitioners Bill 2010 mooted by the Law Ministry.

One thought on “Stay on lawyers paying service tax

  1. The Imposition of 10% service tax on lawyers is unjust and arbitrary. The job of a lawyer is a very hectic and taxing one and it is not a 10AM to 5PM job but it is a 10AM to 10PM job. Likewise the services of lawyers are indispensable like that of Doctors and infact lawyers are doing a great service to the people by solving their legal problems and many a times they render honarary services. Therefore it is not right to demand service tax from them as if they are doing some business. Hence the High Court of Delhi has rightly suspended the said notification issued under the provisions of Legal Practitioners Bill 2010. In fact the same deserves to be quashed. Its better the Government on its own withdraws the said Service Tax and further think of giving some concessions and rebates to the lawyers.

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