SNP Sinha

The Bar Council of India (BCI) is displeased about plans to take away legal education from its ambit by the ministry of Human Resource Development (HRD).

It turns out not all lawyers are against being charged service tax...

The Bar Council of India for one has come out in favour of the tax change that was introduced in Monday's budget, which meant that for the first time ever, Indian lawyers will be deemed to provide a service - something that clients will no doubt applaud after years of being palmed off with mere professional advice.

BCI chairman SNP Sinha told the Business Standard he thought it was a great idea that law firms would finally be taxed.

"The government of India has taken a wise decision by imposing tax," he said. "In the wake of the recently passed Limited Liability Partnership Act, foreign law firms are making (back-door) entry through joint ventures and collaboration. Thus they are justified in imposing tax."

Perhaps crucially, the tax change will not affect individual practitioners or those rendering services to - sorry, advising - individuals.

Unsurprisingly, the Society of Indian Law Firms (SILF) was not happy. The body's president Lalit Bhasin told the daily paper: "It is a (retrograde) step.

"Instead of helping, strengthening and promoting Indian law firms, the government is trying to substantially weaken them, and they are facing the threat of entry of foreign firms in the country."

Thanks to islandexpress who first tweeted the Business Standard article.

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AZB's best friend Clifford Chance officially ceased being the world's largest law firm this week, falling several places behind Freshfields, Skaddens and Baker & McKenzie. And Linklaters is still to announce its results today.

For better or worse, law firm turnover competitions do not take place in public in India despite Clifford Chance blaming AZB a tiny bit for its turnover drop. Things could be changing though.