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

[Asked by 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.

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.