New Delhi: The Delhi High Court on Friday gave a stay order on the Central government’s notification of bringing lawyers, who are extending services to companies, under the purview of service tax from May 1 this year.

Delhi High Court division bench of Chief Justice Deepak Mishra and Justice Sanjeev Khanna gave the stay orders while hearing a petition of Delhi High Court Bar Association. The court has directed the government to submit its reply within the next two weeks. The next hearing for the case is scheduled for May 23.

On April 25, the Centre had notified Legal Practitioner Bill, 2010 for imposing 10 per cent tax on the fees taken by lawyers for rendering services to firms and companies. The Bill was to be brought into application from May 1. Advocates of Delhi HC under the aegis of various lawyer associations had gone on strike on March 24 to express their protest over the issue.

Delhi Bar Association president Rajiv Khosla said, “Lawyers are against the imposition of tax on the services given by them to firms and companies.”


JPN/ Bureau