Karnataka may levy tax on sunlight!
Bangalore, Mar 18: With tax revenues lowering, India's bureaucrats will also be on a look out for cunning means to extract more from the economy. A tax case of 2006 proves it.
Earlier this month, the Supreme Court deferred the substantive judgement between Karnataka Government and Bharti Airtel telecom provider. Karnataka Government claims that Bharti Airtel is liable to pay Value-Added Tax (VAT) of Rs 25.6 crore for its broadband services.
We should be grateful for the nuance here, or else Karnataka would have even started taxing sunlight.
This
is
unethical
for
two
reasons.
-Only
the
Centre
can
tax
services
and
not
State
and
state
VAT
applies
only
to
goods
and
not
services.
A
bizarre
element
is,
Karnataka
knows
this.
-Karnataka
claims
that
broadband
will
be
treated
as
goods
and
not
services,
since
it
involves
what
it
claims
sale
and
transmission
of
'artificially
created
light
energy'.
The Supreme Court that has passed a verdict on the merits of the case, has asked Karnataka"s tax appellate authority to investigate. Meanwhile, Karnataka's success might persuade other state Governments to follow these unethical ways of extorting taxes.
OneIndia News