Service Tax On Senior Advocates Stayed By Gujarat High Court

The Gujarat High Court has vide order dated 30.03.2016 in Percy Cawas Kavina vs. UOI Special Civil Application No. 4926 of 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.

Some experts opined that notwithstanding the stay, it may be desirable for senior advocates to comply with the law, get the registration, collect the service tax and deposit the same with the Government. They expressed the concern that if the levy is upheld at a later point of time (even several years later), the senior advocates may have to deposit the service-tax with interest and it may be difficult for them to recover the service tax from their clients.

To understand the precise implications of the levy see Implications Of Levy Of Service Tax On Senior Advocates

2 comments on “Service Tax On Senior Advocates Stayed By Gujarat High Court
  1. Hement Singh says:

    Sir, May I get the copy of the petition?

  2. Sunil Jain, JSA says:

    Thank you.

    In fact, several High Courts have been approached.
    Earlier today Delhi High Court has also granted a stay on a writ filed by Delhi High Court Bar Association.

    It was an expected development given the push-back in the year 2011 when the service tax on lawyers/legal services was first introduced. Similar reliefs were granted by the High Court.

    There will be compliance related complications in case the levy/withdrawal of exemption is ultimately sustained.


Leave a Reply

Your email address will not be published. Required fields are marked *