Orissa High Court Rules Lawyers Exempt From Service Tax on Legal Income

The Orissa High Court has reaffirmed that individual lawyers are exempt from service tax on their legal income.

The decision came while quashing a tax demand of ₹2.14 lakh and a recovery order of ₹2.34 lakh (including penalty and interest) issued to a Bhubaneswar-based advocate for FY 2015-16.

The court noted that the petitioner, being a practising lawyer, falls within the exempted category as per earlier judicial directions and departmental instructions.

However, income from house property, if applicable, may still be taxed. The HC also directed GST officials to avoid harassing advocates with such notices.