States have the power to levy cess on mining and mineral-use activities, a nine-judge Constitution Bench of the Supreme Court ruled on Thursday. It also upheld that the royalty paid by mining operators to the Central government is not a tax.
The court in the 8:1 judgment also stated that states' power to tax is not limited by Parliament's Mines and Minerals (Development and Regulation) Act of 1957.
This verdict can help boost revenues of mineral-bearing states, mostly in eastern India. Industry, on the other hand, is seeking more clarity on the effective date of cess calculation, and if there will be any double taxation by states and the Centre.
The judgment that resolved an over threedecade old issue was delivered by the Bench comprising Chief Justice of India (CJI) D Y Chandrachud, Justices Hrishikesh Roy, Abhay S Oka, BV Nagarathna, JB Pardiwala, Manoj Misra, Ujjal Bhuyan, Satish Chandra Sharma, and Augustine George Masih. Justice Nagarathna, in her dissenting verdict, said royalty is in the nature of a tax or an exaction.
Esta historia es de la edición July 26, 2024 de Business Standard.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición July 26, 2024 de Business Standard.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
SOM Distilleries debuts in K'taka with Woodpecker beer
Bhopal-based SOM Distilleries and Breweries has entered the Karnataka market with \"Woodpecker\" premium beer, India's first twist cap beer.
Ambiguity over GST food rates in spotlight
The managing director (MD) of a famous restaurant chain in Tamil Nadu supposedly apologising to Union Finance Minister Nirmala Sitharaman in Coimbatore on Wednesday has triggered a political controversy.
Four states get six Vande Bharat trains
Prime Minister Narendra Modi on Sunday virtually flagged off six Vande Bharat trains for Jharkhand, Odisha, Bihar, and UP at Ranchi.
D2C brands hitch their wagon to quick-commerce
As quick commerce gains ground, emerging direct-to-consumer (D2C) brands are betting big on digital channels to drive growth.
UPS: SENSE & SENSIBILITY
As the govt embarks on a new pension scheme, what will be its fiscal implications?
Firms need time to comply with data protection law'
Companies will need time to comply with the Digital Personal Data Protection Act (DPDP) whose rules are to be released, according to VINAYAK GODSE, chief executive officer of Data Security Council of India (DSCI). It's a non-profit non-profit organisation set up by NASSCOM and works in cybersecurity and privacy. \"Companies will need to overhaul processes and adjust operations\", he said in an interview with Ashutosh Mishra in New Delhi. Edited excerpts:
There is a case for Al helping the law
The technology can assist in clearing the massive backlog in courts and in research, report ASHUTOSH MISHRA & BHAVINI MISHRA
Delaying buy decision may push costs higher amid rising prices
Pay 20-30% of cost as down payment; EMI should not exceed 40% of take-home salary
Bank not liable for lack of pledged goods cover
Shree Shakti Foam had applied to Canara Bank for a cash credit facility against the hypothecation of stocks.
India our APAC priority and primary market focus'
With markets looking forward to a rate cut by the US Federal Reserve (Fed) this week, BHASKAR LAXMINARAYAN, chief investment officer and head investment management Asia at Julius Baer, shares with Puneet Wadhwa that a 25-basis- point (bp) cut paired with a strong dovish message could be just as effective as a 50-bp cut with minimal commentary. The impact, he observes, will largely depend on the accompanying message and how it is interpreted. Edited excerpts:
