HC Stays Notification on Service Tax on Lawyers

HC Stays Notification on Service Tax on Lawyers – CBEC issued a notification on March 1, by which senior advocates of the country have been asked to pay service tax on their fees.

service taxThe Allahabad High Court on Monday stayed the notification issued by Central Board of Excise and Customs (CBEC), imposing service tax on senior advocates. This service tax has been imposed by Union Budget-2016.

Hearing a petition filed by Shashi Nandan, a designated senior advocate practicing in this court, a division bench comprising Justice Vimlesh Kumar Shukla and Justice U C Srivastava directed the Central covernment and CBEC to file their respective replies within four weeks and ordered to list the case after six weeks for hearing.

CBEC issued a notification on March 1, by which senior advocates of the country have been asked to pay service tax on their fees.

It was argued on behalf of the petitioner that impugned notification is discriminatory and also against the fundamental right of the profession of senior advocate as provided under Article 14 (right to equality) and 19(1)(g) of the Constitution, which provides freedom to practice any profession or to carry on any occupation, trade or business.

It was further submitted by the petitioner’s counsel that the notification makes discrimination between senior advocates and other advocates. Further, the advocates’ fees does not fall within the ambit of service tax. The matter will be heard after six weeks.

Source: TOI

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