Latest news with #pre-GST
Time of India
an hour ago
- Business
- Time of India
CM Sukhvinder Singh Sukhu distributes land allotment certificates to Pong Dam oustees
Shimla: Chief minister on Tuesday handed over land allotment certificates to 89 Pong Dam oustees during a function in Haripur in the Dehra assembly constituency of Kangra district. Tired of too many ads? go ad free now Sukhu said the issue of Pong Dam oustees was strongly raised by the local MLA before the govt, highlighting how they were suffering for the last 50 years and even struggled to get their documents. The CM said the state govt was granting them their due and assured that the remaining displaced families would also be allotted land in near future. Additionally, each family will receive Rs 3 lakh as financial assistance for building homes, he said. "For the last 25 years, this constituency didn't have any Congress legislator. An independent MLA from Dehra resigned in arrogance. However, 11 months ago, Congress' Kamlesh Thakur was elected as MLA in the byelection and since then Dehra has been witnessing transformation towards development," said Sukhu. The CM also assured the completion of the Nandpur bridge by December this year. He said the state govt was establishing 'Adarsh Swasthya Sansthans' in all the 68 assembly constituencies with six specialist doctors each so that the people could be provided specialised health services. The CM also announced that the Community Health Centre (CHC), Haripur, would be made an 'Adarsh Swasthya Sansthan'. He further announced Rs 2 crore for the construction of residential accommodation for the doctors. He said an international-level zoological park was being constructed with an outlay of Rs 619 crore in Bankhandi in the Dehra area, and its first phase would be made functional next year. The project was expected to boost tourism in and around Dehra besides strengthening the local economy. Tired of too many ads? go ad free now The CM also said the expansion work of Kangra airport was underway and the affected people would receive fair compensation. Sukhu, meanwhile, informed that the state govt shifted the wildlife wing office of the forest department from Shimla to Dharamshala, and in near future, more govt offices would be moved to Kangra district to decongest Shimla city. He said the implementation of the GST caused significant losses to Himachal Pradesh as in the pre-GST era the state used to receive Rs 3,000 crore annually, but now it gets only Rs 150 crore. Responding to the criticism from the BJP leaders on the medical device park, Sukhu said the previous BJP govt was trying to give away land worth Rs 500 crore in Nalagarh for merely Rs 12 lakh to an industrialist, ignoring the state's interest. The present govt will not allow the assets of the state to be squandered and that the state's financial condition is improving due to the policies of the present state govt, he added. MSID:: 121601587 413 |
Time of India
4 days ago
- Business
- Time of India
SC verdict may hike tax burden on OTT platforms, gaming apps
New Delhi: The Supreme Court ruling allowing dual taxation on television broadcasters may increase tax burden on over-the-top (OTT) platforms such as Amazon Prime and Netflix and other subscription based digital content and even gaming applications, said its May 22 judgment on Asianet Satellite Communications and others, a bench of justices BV Nagarathna and NK Singh ruled that broadcasting involves delivery of service and delivery of entertainment and can be taxed by different means the Centre can impose service tax on the act of broadcasting, while states are allowed to charge entertainment tax on the content consumed by viewers. "The ruling is mainly premised on the basis that both taxes deal with different aspects of broadcasting activities and hence, there is no overlap in taxing powers of the Centre and state," said Saloni Roy, partner, Deloitte India. She added that although the case relates to the pre-goods and services tax (GST)era, the judgment could have "significant implications" and that it has created tax uncertainty for the industry. Experts said it may lead to decentralisation of tax. "By endorsing the 'aspect theory', which permits separate taxation of different elements of the same activity, the court has opened the door to potential dual taxation on digital platforms such as OTT services, gaming apps and social media," said Saurabh Agarwal, partner, EY. He added the ruling has not only created more confusion for the industry, but also goes against the spirit of the GST, which was designed to unify and replace various indirect taxes, including entertainment tax. "This ruling may pave the way for states or even local bodies-under Entry 62 of the Constitution-to reintroduce such levies under the label of 'entertainment," Agarwal said, adding that this may pose a challenge for the GST Council. In the pre-GST era, state governments were empowered to levy tax on entertainment. "With the introduction of GST, state governments are still empowered to levy tax on entertainment and amusement. However, this is permitted through local bodies such as panchayats, municipalities, etc.," Roy said. For instance, Haryana Municipal Entertainment Duty Act, 2019 permits levy of duties with respect to admission to public entertainments, which includes any exhibition, performance, amusement, game, sport or race to which persons are ordinarily admitted on payment. Maharashtra Entertainments Duty Act, 2023 provides for the levy of duty in respect to entry to entertainment or exhibition, including direct-to-home broadcasting service, which is to be collected by local bodies. Similarly, Tamil Nadu charges both GST and entertainment tax on Indian Premier League match tickets. The digital industry under the streamlined tax regime under GST was aware of the taxation burden, but this decision reintroduces uncertainty, with the possibility of more states taxing OTT platforms , content creators and gaming applications in the name of entertainment. "There are many factors which should act against higher taxes for digital media as an indirect impact of this judgment, including the lack of territoriality in delivery of such services," said Shashank Mishra, Partner, Shardul Amarchand Mangaldas & Co.
Time of India
4 days ago
- Business
- Time of India
SC verdict may hike tax burden on OTT platforms, gaming apps
New Delhi: The Supreme Court ruling allowing dual taxation on television broadcasters may increase tax burden on over-the-top (OTT) platforms such as Amazon Prime and Netflix and other subscription based digital content and even gaming applications, said experts. In its May 22 judgment on Asianet Satellite Communications and others, a bench of justices BV Nagarathna and NK Singh ruled that broadcasting involves delivery of service and delivery of entertainment and can be taxed by different authorities. This means the Centre can impose service tax on the act of broadcasting, while states are allowed to charge entertainment tax on the content consumed by viewers. "The ruling is mainly premised on the basis that both taxes deal with different aspects of broadcasting activities and hence, there is no overlap in taxing powers of the Centre and state," said Saloni Roy, partner, Deloitte India. She added that although the case relates to the pre-goods and services tax (GST)era, the judgment could have "significant implications" and that it has created tax uncertainty for the industry. Experts said it may lead to decentralisation of tax. "By endorsing the 'aspect theory', which permits separate taxation of different elements of the same activity, the court has opened the door to potential dual taxation on digital platforms such as OTT services, gaming apps and social media," said Saurabh Agarwal, partner, EY. He added the ruling has not only created more confusion for the industry, but also goes against the spirit of the GST, which was designed to unify and replace various indirect taxes, including entertainment tax. "This ruling may pave the way for states or even local bodies-under Entry 62 of the Constitution-to reintroduce such levies under the label of 'entertainment," Agarwal said, adding that this may pose a challenge for the GST Council. In the pre-GST era, state governments were empowered to levy tax on entertainment. "With the introduction of GST, state governments are still empowered to levy tax on entertainment and amusement. However, this is permitted through local bodies such as panchayats, municipalities, etc.," Roy said. For instance, Haryana Municipal Entertainment Duty Act, 2019 permits levy of duties with respect to admission to public entertainments, which includes any exhibition, performance, amusement, game, sport or race to which persons are ordinarily admitted on payment. Maharashtra Entertainments Duty Act, 2023 provides for the levy of duty in respect to entry to entertainment or exhibition, including direct-to-home broadcasting service, which is to be collected by local bodies. Similarly, Tamil Nadu charges both GST and entertainment tax on Indian Premier League match tickets. The digital industry under the streamlined tax regime under GST was aware of the taxation burden, but this decision reintroduces uncertainty, with the possibility of more states taxing OTT platforms, content creators and gaming applications in the name of entertainment. "There are many factors which should act against higher taxes for digital media as an indirect impact of this judgment, including the lack of territoriality in delivery of such services," said Shashank Mishra, Partner, Shardul Amarchand Mangaldas & Co.
The Hindu
26-05-2025
- Business
- The Hindu
Greater share: on States and central taxes
Prime Minister Narendra Modi's exhortation to the Chief Ministers gathered at the 10th Governing Council Meeting of NITI Aayog over the weekend, in New Delhi, that the Centre and States should come together as 'Team India' to propel the country forward, is a good sentiment; but, it belies reality. The Centre-States relationship right now is a one-way street, with the Centre resorting to the stick, and, occasionally, to the carrot method, to make the States comply with its wishes. The States are finding it increasingly difficult to voice their often genuine and serious grievances at the national level since federal bodies such as the NITI Aayog Governing Council or the Goods and Services Tax (GST) Council do not meet often. Meeting once a year is not nearly enough for the Governing Council of a body whose very first objective is to develop a 'shared vision of national development priorities'. The GST Council, too, has not met in more than five months, when regulations say it should meet at least once a quarter. So, when the States do get a chance to speak at the national level, as they did on Saturday, most have no choice but to focus on their individual problems or achievements rather than on a collaborative 'Team India' approach. There were, however, some notable deviations where Chief Ministers looked beyond their States' borders in an attempt to drive national growth. One was Andhra Pradesh Chief Minister N. Chandrababu Naidu's proposal for the creation of three sub-groups of States to focus attention on the issues of GDP growth and investments, leveraging India's demographic bounty, and using technology to drive governance. Sub-groups are a good way for the Centre to bring States on board, if it finds a body comprising all States to be too unwieldy. The most notable pan-India suggestion was probably Tamil Nadu Chief Minister M.K. Stalin's call for the Centre to share 50% of its tax revenue with the States, up from the current formula of 41%. This is an issue that certainly requires more discussion. The implicit condition behind the Centre providing States compensation for any losses arising out of GST for five years was that the States would use this time to bolster their own tax revenues. While progress on this has been patchy — with some States doing far better than others — it has nevertheless been significant. The States' combined own tax revenues as a percentage of Gross State Domestic Product (GSDP) grew from 6.6% in 2017-18 to 7.2% in 2024-25. On the other hand, GST has failed to live up to its potential, with net revenues only recently surpassing pre-GST indirect tax levels. Since GST subsumed many of the States' levies, it seems only fair that the Centre seriously consider their demand for a bigger share in central taxes.
Time of India
26-05-2025
- Business
- Time of India
Bharti Airtel shares in focus after SC verdict on Rs 585 cr entertainment tax case
Synopsis The Supreme Court dismissed Bharti Telemedia's appeal in a Rs 585 crore entertainment tax case. The court upheld the states' rights to levy taxes on DTH services. While most of the liability was provisioned, the ruling may have wider regulatory implications. The verdict pertains to pre-GST dues, as entertainment tax is now subsumed.
