The Union Budget 2016-17 has proposed withdrawal of the service tax exemption to senior advocates in relation to services provided to other advocates or partnership law firms. Accordingly Service Tax Notification 18/2016 and Notification No. 09/2016 had been issued.
The said withdrawal of exemption to senior advocates was challenged in the Gujarat High Court in Cawas Kavina vs. UOI Special Civil Application No. 4926 of 2016.
The Gujarat High Court in the aforesaid appeal has, vide order dated 30.03.2016 directed an ad-interim stay of Notification No. 18/2016-ST and Notification No. 9/2016 – ST with respect to the levy of service-tax on senior advocates.
Copy of the order is as under:
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