HC stays tax on lawyers
The vacation bench comprising Justice B. Prakash Rao and Justice V. Eswaraiah of the Andhra Pradesh High Court granted stay on levy of service tax on the advocates.
The Centre in its recent Budget had mooted a proposal to levy tax on advocates for the services offered by them to their clients. Accordingly, the Centre amended the Finance Act and brought the advocates under purview of the Act. The Central Board of Direct Taxes is levying the taxes on advocates in accordance with the amendment.
Mr M.V.J.K. Kumar, Mr B. Srinivas Rao, Mr N. Venkataiah and Mr Gautam Krishna, practising advocates in the city, challenged the Centre’s decision.
Mr M.V.K. Moorthy, senior counsel of the Supreme Court, arguing on behalf of the petitioners contended that assisting the courts is not equivalent to providing services as it was not a commercial or trading activity to attract any service tax and that there was no value addition in the process.
While bringing to the notice of the court that almost all High Courts across the country have already stayed the move of the Centre, he said, “Law is no trade or merchandise.”
The bench ruled that “since it is represented that the other High Courts have already granted stay in similar circumstances, there shall be interim stay till further orders.”
The bench issued notices to the respondents seeking their stand on the plea.
Source: https://www.deccanchronicle.com/channels/cities/hyderabad/hc-stays-tax-lawyers-710
