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Service tax not for individual
July, 23rd 2009

Allaying apprehensions on the levying of service tax on lawyers as has been proposed in the General Budget-2009-2010, the office of chief commissioner, customs, central excise and service tax in its release has clarified that the proposed service tax will be charged only on the `business entity' providing any service, advice, consultancy or assistance in any branch of law to an other `business entity'.

"Any service which is provided by way of appearance before any court, tribunal or authority will not attract service tax. It has been provided in the budget that `business entity' shall include association of personnel, company or firm but will not include an individual," the release explained.

Taking note of the boycott of courts by a section of lawyers protesting the levying of service tax, the service tax department further clarified that lawyers, advocates or attorneys providing advice or consultation by appearing before courts, tribunals or authority are not liable to pay service tax.

 
 
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