Rs 38,000 cr service tax dues: Govt mulls out-of-court deal to resolve issue with banks

Agencies
August 2, 2019

Bengaluru, Aug 2: The government may be inclined for an out-of-court settlement in its dispute with banks over unpaid service tax dues to the tune of Rs 38,000 crore with officials indicating a more flexible stance to resolve the outstanding issues.

Sources in the government said that officials in the Finance Ministry may soon meet bankers to thrash out a compromise formula to resolve the issue that has divided the banking industry and pushed it into taking legal recourse.

A meeting proposed last month to resolve the issue could not take place and sources now say that all efforts are being made to organise the banker-official meeting this month so that a compromise is worked out well before the next date of hearing by the Delhi High Court in November. A meeting of bankers with Finance Minister Nirmala Sitharaman is also slated on Friday.

About 13 banks, including State Bank of India and HDFC Bank, moved Delhi High court early last month against a government demand for service tax to the tune of Rs 38,000 crore. Their claim is that the government decision is arbitrary and the amount has been calculated by multiplying penalty with the total number of accounts held with the respective banks resulting in big increase in tax demand.

Other banks in the petition include Punjab National Bank, Yes Bank and Hong Kong and Shanghai Bank, among others.

The government made the service tax demand for "treating the commitment of the customers to maintain minimum average balance (MAB) in bank accounts as a consideration for banking facilities provided for free".

Though the demand is of Rs 38,000 crore, sources said that the total amount could reach up to Rs 60,000 crore if interest and penalty are both included. Of the current demand, HDFC Bank itself is facing a penalty of up to Rs 18,000 crore.

"The stakes are high and has the potential to put the banking segment under prolonged periods of disruption. Coming at a time when the NPA issues are getting resolved, the government is unwilling to risk further and may work out an out-of-court settlement," said a source privy to the development. 

At the last hearing on the matter, a division bench comprising Justice S. Muralidhar and Justice Talwant Singh had issued a notice to the Centre, the Central Board of Indirect Taxes and Customs, the Goods and Services Tax Council and other authorities on the petition filed by the banks. The next day of hearing is November 14.

Other than the Delhi High Court, similar petition is pending before the Madurai bench of the Madras High Court. In this case, three banks have approached the court for relief.

As per industry estimates, savings account holders have paid over Rs 10,000 crore to the banks in the last three years as penalties for not maintaining minimum balance in their savings accounts. The penalty for non maintenance of minimum balance also varies from bank to bank.

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coastaldigest.com news network
July 8,2020

Mangaluru, July 8: Dakshina Kannada on Wednesday recorded its highest single-day spike in Covid-19 cases with 183 cases reported in the district, while Udupi reported 31 new cases.

DK also recorded two more fatalities – both patients with co-morbid conditions — taking the total death toll in the district to 28. Udupi has recorded three Covid-19 deaths.

The fresh spike saw total positive cases in DK shoot up to 1,542 and active cases to 819. As many as 12 patients were discharged from hospital on Wednesday. The positivity rate in the district now stands at 0.07 %. Health authorities as on date have received 22,181 samples and 20,153 out of 21,695 samples tested have turned out negative.

MLA’s gunman tests positive

The gunman assigned to former minister U T Khader tested positive on Wednesday and three others who were with him in the escort vehicle have been quarantined, said city police commissioner Vikash Kumar Vikash. A section of police commissioner’s office was shut for sanitisation as per protocol after staff working there were treated as primary contacts. The office per se has not been sealed contrary to ‘reports’ doing rounds in social media, he said.

Deputy commissioner Sindhu B Rupesh said the district reported two deaths — one late on Tuesday and the other during the day. The victims are a 57-year-old man and 32-year-old youth. Two of the 183 cases were secondary contacts, 25 were cases of influenza like illness, four cases of SARI, one a case of inter district travel, two with interstate travel, five with international travel history, 22 random samples and five pre-surgery samples.

Udupi district recorded 31 new cases taking the total positive cases recorded as on date to 1,421. Discharge of 1,189 patients meant that Udupi has 229 active cases.

Meanwhile, Kota Shrinivas Poojari, minister for fisheries on Wednesday inaugurated the Covid-19 lab at district hospital in Udupi. Karkala MLA Sunil Kumar inaugurated ambulance monitoring system to ensure expeditious transfer of infected patients to designated treatment centres.

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News Network
July 13,2020

Bengaluru, Jul 13: In an attempt to avoid the ugly scene of migrant workers walking to their native places due to the current week-long lockdown imposed in the state, the Karnataka State Road Transport Corporation (KSRTC) is running 1,600 additional buses on Monday and Tuesday to help them return safely.

The KSRTC has already run 249 additional buses from the State capital and has so far ferried 6,641 passengers and 231 buses have been booked.

The KSRTC appealed to the public not to panic as additional buses have been deployed. "After ensuring social distance and conducting thermal screening, passengers will be allowed to travel. It has already been planned to operate additional buses," the corporation stated in a press release here.

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News Network
February 5,2020

Chennai, Feb 5: In order to ensure housing for all, the Madras High Court has proposed ban on non-resident Indians from purchasing houses in India, prohibit speculative sale, and impose 100 per cent extra stamp duty on purchase of second house.

The court on its own impleaded the Union housing and finance ministries as party respondents.

It has directed them to answer a series of questions including as to how many families have basic amenity of housing in India as well as in Tamil Nadu, population and housing ratio in the country and in the state, when 'Housing for All' mission of the central government would be achieved.

"Why the government does not consider imposing such restrictions to control escalation of house prices and to provide a house to every family in the country, a division bench of Justice N Kirubakaran and Justice Abdul Quddhose wondered.

Directing the authorities to inform as to whether the central and state have got special schemes to provide housing for the marginalized and economically weaker sections including SC/ST communities, the bench has also sought the details of the number of families that possess more than one house.

"Why the governments do not restrict families/individuals from purchasing/possessing more than one housing unit/flat/plot till "Housing for all" is achieved?

Why not the government charge 100 per cent more or extra stamp duty to discourage buying more than one house by a family while purchasing second house?

Why not the government conditionally allow the families to purchase more than one house provided the said family pays 100 per cent extra statutory dues like property tax, electricity charges, water and sewerage charges on the second property?" the bench said.

This apart, the court also wanted the authorities to know as to why it should not prohibit the NRIs from purchasing houses in India to bring down the cost of housing.

Justifying its directions, the court said "Lakhs and lakhs of people are living on platforms, roads, and cement pipes, slums, under the trees and on banks of water bodies without proper shelter and basic amenities and safety."

It is true that the Centre had taken a policy decision to provide housing unit to every family.

It should be achieved at the earliest, the court said, adding it could become fruitful when restrictions are put on persons who hold more than one housing units.

The court passed the order while hearing an appeal moved by the Tamil Nadu Housing Board challenging a single judge order against acquisition of about 369 acres of private land in Thudiyalur and Vellakinar areas of Coimbatore for a housing scheme.

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Suresh SS
 - 
Wednesday, 5 Feb 2020

We believed that only Indian Govt. ministers, MP and MLAs has this disease, now it is spreading everywhere even Indian High courts. it is certainly very harmful virus  

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