Delhi HC stays service tax on senior advocates

New Delhi, April 1 (IANS) The Delhi High Court on Friday stayed the notification on imposition of 14 percent service tax on senior advocates and issued notice to the central government.

A division bench of Justice S. Muralidhar and Justice R.K. Gauba, in an interim order, stayed the notification to maintain consistency with a Gujarat High Court March 30 order that had also stayed notification with respect to the same issue.

The court would hear the matter next on September 27.

According to the notification senior lawyers are liable to pay services tax with effect from April 1, 2016.

The court was hearing on a plea by Delhi High Court Bar Association (DHCBA) challenging the notification on the ground that charging senior advocates on the services they provide to their clients, as well as charging the clients on the services they take from senior advocates, amounts to double taxation and is unconstitutional.

The DHCBA also contended that the function of senior advocates – aiding the court in administration of justice – is not a “taxable service”.

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