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Lawyers up in arms against service tax

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  • The announcement by Union Finance Minister Pranab Mukherjee in his Budget to bring lawyers within the service tax net has met with opposition from advocates in Kanpur.

    Lawyers under the aegis of Kanpur Bar Association (KBA) held a one-day symbolic strike on Tuesday, paralysing work at Kanpur district and dehat courts.

    Indeevar Bajpai, KBA General Secretary, said: “It is a shocking move by the Union government. As advocates we serve the people, but cannot force them to pay our fees.” The lawyers threatened to hold further protests and strike if the proposal was not withdrawn.

    Terming the profession as social service, Bajpai claimed that majority of the people approaching lawyers were not in a position to pay the fees. “When we do not have a fixed income, then how can the Finance Ministry charge service tax at the rate of 12.5 per cent?” he asked. Now, under pressure, the advocates will have no other option but to ignore the financial background of their clients and charge money from all, said Bajpai.

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    Ganesh Dixit, KBA president, also claimed that imposing service tax on advocates was not justified.

    “Several Congress parliamentarians, including Salman Khurshid and Raja Ram Pal are lawyers themselves. It is shocking that they have not raised their voice over the issue,” he said. Dixit added that a KBA delegation will soon meet Akbarpur MP Raja Ram Pal and hand over a memorandum in the regard.

    “It is for the first time that advocates have been brought under the service tax net. One fails to understand the logic behind this decision,” he said.

    Service TaxBy: T.V.Ravindran | 03-Oct-2009 Reply | Forward Service tax on lawyers is a must. Generally no lawyers issue a receipt for their clients though they insist for receipts as proof in all cases. Bajpai's arguement about the fixed income of lawyers is meaningless.Many people who pays service tax are not of fixed income category but pays the tax as per rate. Why should one have fixed income to pay tax? So lawyers must pay tax because they are the greatest evaders as they do not issue a receipt to many of their clients, never show interest to close a case, try to get extensions to the maximum, go on collecting fees to every sitting with no use to the client and call it a "service"! And finally how these huge amount of taxes collected by the government in different names are being utelized is a matter of debate because a major portion of funds are being used for useless purposes. To posint out one - expenditure on security of So called VIPs and Leaders who is of no use to the people!
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