Service Tax notices to advocates arbitrary and illegal, BCD writes to Union Finance Minister Nirmala Sitharaman

The Bar Council of Delhi has written to the Union Finance, Nirmala Sitharaman raising “strong objections” against the issuance of notices to individual advocates for "Service Tax Assessment" for the period FY 2015-16 to April- June, 2017. .In its letter dated January 15, the Bar Council of Delhi has asserted that since advocates do not fall within the ambit of service tax and service tax liability, the question of making service tax assessment against advocates does not arise..“The Advocates were exempted for taking registration and filing return, etc. Whereas such notices have made serious imputation against advocates that they have not deposited service tax, whereas the law casts no such obligation on the advocates. Therefore, the question of making service tax assessment against advocates does not arise and such notices issued are non-est on law. Late Shri Arun Jaitely, the then Finance Minister categorically stated that it will npt be applicable to Advocates who have been exempted for taking registration and filing return, etc GST too.”BCD Letter.The Bar Council of Delhi has informed the Finance Minister that these notices are arbitrary and illegal and are causing undue harassment which is a serious concern in the legal community.“Because of these notices, there is resentment in the entire Bar across the Board and we have been informed that such notices have been sent to advocates practicing at Mumbai and at other places. The Bar is taking this matter very seriously..".The letter further adds that the notices do not even state any provisions of law under which they have been issued. It is thus claimed,"The notices were sent mechanically and arbitrarily to harass professional advocates and to indulge in unfair and corrupt practices.".The Bar Council has thus urged Minister Sitharaman to resolve the matter expeditiously and take action against erring Officers..“I would earnestly request you to immediately issue appropriate directions for withdrawal of such letters/notices and issue directions to take serious action against the guilty officers at whose behest such illegal notices have been issued, which are explicitly contrary to the mandate of law.”BCD Letter.Read letter