Service charge to be levied on Indian law firm fees

The Bombay High Court has decided that businesses will need to pay a service charge - currently pegged at 12.36% - on the fees they pay to external lawyers.

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The Bombay Bar Association was one of a group of legal associations and individuals which had petitioned the court to stop the tax, arguing that it was unconstitutional. They had argued that lawyers are officers of the court who assist in the administration of justice - hence being outside the context of service provision. But the court held that an increasing number of lawyers do more than act in court cases and that the charge should remain. Source: Times of India

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