Service Tax

Delhi High Court also Stays Service Tax on Senior Advocates

Two days after the Gujarat High Court stayed service tax on senior advocates, today, a division bench of the Delhi High Court comprising of Justice S. Muralidhar and RK Gaub also stayed the withdrawal of service tax exemption to Senior Advocates.

The Delhi High Court stayed provisions of Notification Nos. 18/2016-ST and 9/2016–ST which imposed service tax on senior advocates with effect from 1st April, 2016. The Court issued notice to the Union Government over a peition moved by the Delhi High Court Bar Association (DHBA) challenging the imposition of service tax on senior advocates.

Among others, the DHBA’s pettition took the stand that:

  • A Senior Advocate is an officer of the Court and assist in the administration of justice.
  • It would amount to double taxation which is against the underlying principles of value added tax.
  • The notifications would cause hardship not only to Senior Avocates but to all other advocates and their clients who avail the services of Senior Advocate.

 

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