Legal Services by Individual Advocate to Law Firm Exempt from Service Tax: Bombay High Court

The Bombay High Court has held that service tax is not leviable on legal services provided by an individual advocate to a law firm.

Quashing a ₹26.81 lakh demand against Mumbai lawyer Manisha Shroff, the Court relied on the 2012 mega exemption and reverse charge notifications under the Finance Act.

The Bench ruled that such services are expressly exempt and that even where taxable, liability lies on the client, not the advocate.

Recovery actions, including freezing of bank accounts, were set aside.

[Manisha Rajiv Shroff v. UOI & Ors.]