Delhi lawyers observe strike against bill to levy service tax

Lawyers on Thursday observed a strike in the Delhi high court and all the six district courts to protest the finance bill proposing levy of 10% tax on the fee charged by them for legal services.

"We are observing strike seeking roll back of the proposal to levy service tax from us," additional solicitor general and president of Delhi high court bar association (DHCBA) A S Chandhiok said.

The President of the DHCBA, who himself was manning one of the entrances of the high court, was seen ensuring that no lawyers appear in any courtroom.

"Practicing chartered accountants, cost accountants and company secretaries currently continue to enjoy exemption from paying service tax in respect of the representational services provided to their clients before any statutory authorities. Of late, doctors have been saved from the service tax net. The proposal thus suffers from arbitrariness and discrimination as well, apart from the stark realities that it brings indescribable difficulties to the legal fraternities as a whole," the DHCBA, in its letter to the finance minister, said.

Meanwhile, Rajiv Khosla, president of the Delhi bar association, claimed the strike was successful in all the six district courts here as no lawyers were appearing.

"Lawyers are not appearing in any of the courts and we will give our memorandum to the Finance Minister and the law minister," Khosla said.

Litigants were having a tough time as the courts were not conducting any judicial business due to the strike.

Earlier, a coordination panel of various Delhi bar associations and the Rajasthan bar council had decided to observe a day-long strike on the issue.

 

The coordination panel claimed that the strike in the adjoining states like Uttar Pradesh, Haryana and Rajasthan was also complete.

The union finance ministry's proposal in the Legal Practitioners Bill 2010 for imposing service tax on lawyers cannot be accepted, Khosla said.

Criticising the Bill, Khosla said, "Instead of imposing the 10% service tax on lawyers, the Centre should make efforts to stop corruption".