Service Tax on Individual lawyers stayed by Delhi High Court

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Delhi High Court today (Friday – 29.4.2011) stayed the Notification levying service tax on representational services rendered by individual lawyers to business entities, till further orders and fixed the next date of hearing on 23.5.2011, with directions to UOI to file counter in a fortnight.

The stay was given in response to Writ Petition filed in the Delhi High Court bearingWP No. 2792 of 2011 by Delhi Bar Association to challenge the levy of service-tax on “Legal Consultancy Services”.

The Court also frowned upon the unusually short transition period given in the notification dated 27th April, 2011, making it effective from 1.5.2011, hardly providing sufficient time to switch over to new accounting systems and to seek registration.