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.
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