Now Kolkata High Court stays service-tax levy on senior advocates

[Guest]

Dear Sir,

Please explain regarding Now Kolkata High Court stays service-tax levy on senior advocates, Service Tax : Prima facie, budget notifications nos. 9/2016-ST, 18/2016-ST and 19/2016-ST imposing service tax on legal services provided by 'senior advocates' under forward charge may unreasonably prejudice Senior Advocates; hence, said notifications and consequent levy of service tax on senior advocates was stayed.Thanks & regards.

[Ganeshan Kalyani]

In the current budget the legal consultancy service has been amendments vide notifications. As per the amendment the Senior Advocates are made liable to pay service tax under forward charge.

The service provided by advocates except senior advocates to a business entity the service tax on the service provided is liable to be pad by the recipient of service. And the service provided to other than business entity is exempt. Hence I think that when service provided by advocates except senior advocates are exempt under forward charge then why would Senior Advocates will accept the responsibility of paying service tax under forward charge. Thus they have filed petition and as a result service tax on senior advocates under forward charge is stayed.

This is my view but law maker intention behind bringing the senior advocates to pay service tax under forward charge would be meaningful. Thanks.

[KASTURI SETHI]

The Govt. has challenged the stay orders by various High Courts in the Supreme Court.

[Ganeshan Kalyani]

Sir thanks for updated news.

[Suryanarayana Sathineni]

We need to wait for the decision of the Apex Court on the Departmental petition on all the stay Orders issued by 3 High Courts including Calcutta High Court.

Best Regards

Suryanarayana

AI Summary

Service tax on senior advocates stayed pending review of forward-charge notifications challenging the imposed liability and levy mechanism. Notifications in the budget extended the forward charge to senior advocates, making them directly liable for service tax; petitioners argued this departs from the prior framework where recipients of advocacy services bore tax or services were exempt, and a high court has stayed the levy pending review while the government has challenged those stays in a higher forum.