Service tax on  Legal Services provided by advocate (whether individual or firm) to any business entity  has been imposed vide the Finance Act, 2012 under reverse charge mechanism wherein service recipient is liable to deposit service tax on fees paid to advocates.

High Court of Delhi vide order dated 21.09.2012 has stayed the implementation of this amendment in a petition (W.P.(c) No. 5957/2012) led Mr. A.S.Chandhiok, Sr. Adv. with Mr. Ruchir Bhatia, Adv. for Delhi Tax Bar Association.

Next Hearing is scheduled to take place on 27.11.2012.

——-

IN THE HIGH COURT OF DELHI AT NEW DELHI

W.P.(C) 5957/2012 and CM No.12257/2012 (for stay)

DELHI TAX BAR ASSOCIATION and ANR.

versus 

UNION OF INDIA and ORS.  

  CORAM: 

   HON’BLE THE ACTING CHIEF JUSTICE

   HON’BLE MR. JUSTICE RAJIV SAHAI ENDLAW

   O R D E R

   21.09.2012

  Notice.

  Learned counsel for the respondent No.1 accepts notice.

  The remaining respondents be served for 27th November, 2012.

  Rule DB.

  Our attention is drawn to the interim order dated 29.04.2011 passed   by this Court in W.P.(C)  No.2792/2011 whereby it was directed that the   amendment made in Section 65(105)(zzzzm) by the Finance Act, 2011 shall   not be given effect to. Going by the spirit of that order, which   continues to  be in force, we direct that the provisions of Sections 65B(44) and 66B of   the Finance Act, 1994 (as amended by the Finance Act, 2012) as well as   Rule 2(1)(d)(D)(II) of the Service Tax Rules, 1994 shall not be given   effect till the next date of hearing.

CM No.12256/2012 (for exemption)

  Allowed, subject to just exceptions.

  The application is disposed of.

  ACTING CHIEF JUSTICE

  RAJIV SAHAI ENDLAW, J

  SEPTEMBER 21, 2012

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