The Delhi High Court today relieved Senior Advocates from paying service tax for the period between April 1, 2016 to June 5, 2016 under forward charge..The Central Government, through its notification dated March 1, 2016, had made levy of service tax applicable on the services of Senior Advocates on forward charge basis..The Delhi High Court Bar Association (DHCBA) challenged the levy of service tax on Senior Advocates through a writ petition in the High Court. The Court had stayed the impugned notification and directed the government to continue the reverse charge mechanism for payment of service tax for Senior Advocates..Subsequently, the Central Government withdrew the impugned notification on June 6, 2017..In the last hearing, the Court had directed the government counsel to seek instructions as to whether the government would enforce the demand of service tax on Senior Advocates on forward charge basis for the period between the two notifications i.e. April 1, 2016 to June 5, 2016..Today, the Centre submitted before the Bench of Justices S Muralidhar and Pratibha M Singh that the demand for service tax on forward charge basis between the said period would be enforced..The petitioner (DHCBA) contended that in view of the earlier order passed by the Court on April 1, 2016 whereby it was directed that service tax on the services of senior counsel would continue to be payable on reverse charge basis, the stand of the government herein is unjustified as it would have already received the tax payable on the services rendered..The Court upheld the contentions of the petitioner and stated that the demand for service tax payable by Senior Advocates on forward charge basis, for the aforementioned period was unwarranted.
The Delhi High Court today relieved Senior Advocates from paying service tax for the period between April 1, 2016 to June 5, 2016 under forward charge..The Central Government, through its notification dated March 1, 2016, had made levy of service tax applicable on the services of Senior Advocates on forward charge basis..The Delhi High Court Bar Association (DHCBA) challenged the levy of service tax on Senior Advocates through a writ petition in the High Court. The Court had stayed the impugned notification and directed the government to continue the reverse charge mechanism for payment of service tax for Senior Advocates..Subsequently, the Central Government withdrew the impugned notification on June 6, 2017..In the last hearing, the Court had directed the government counsel to seek instructions as to whether the government would enforce the demand of service tax on Senior Advocates on forward charge basis for the period between the two notifications i.e. April 1, 2016 to June 5, 2016..Today, the Centre submitted before the Bench of Justices S Muralidhar and Pratibha M Singh that the demand for service tax on forward charge basis between the said period would be enforced..The petitioner (DHCBA) contended that in view of the earlier order passed by the Court on April 1, 2016 whereby it was directed that service tax on the services of senior counsel would continue to be payable on reverse charge basis, the stand of the government herein is unjustified as it would have already received the tax payable on the services rendered..The Court upheld the contentions of the petitioner and stated that the demand for service tax payable by Senior Advocates on forward charge basis, for the aforementioned period was unwarranted.
