Kashmir Court tells Pay Rs. 200 Crore fined Rs.10 Lakh to 7 Telecom Companies

Kashmir Court tells Pay Rs. 200 Crore fined Rs.10 Lakh to 7 Telecom Companies


Kashmir Court in a landmark judgment told 7 telecom companies to pay
around Rs 200 crore as entry fee into the state.
Furthermore Court imposed a fine of Rs 10 lakh on mobile companies
Bharti Airtel,
Idea Cellular,
Tata Tele Services,
Viacom,
Infratel,
Reliance Communications
Dishnet.

Because of this judgment state will get the Rs 459 crore as entry tax from the companies for a period of last five years.

J&K entry tax act is a regulatory measure to prevent menace of tax evasion.
The constitutional validity of entry tax can not be questioned as the same is protected under the constitution

Government imposed the entry tax on the telecom companies.
But telecom companies did not pay tax and filed a petition in the Court demanding exemption
From the entry tax.
In its petition companies said that they do not sale equipment and they create infrastructure in the state and provide mobile services.

But honest and intelligent and honorable justice Attar in his judgment said that
Taxes are the revenue of the state which is used on the welfare programs benefiting the people at large.
Non payment of taxes affected the people.
Compensating the people in absolute terms may not be possible. The petitioners by investing the tax money in business activities have benefited themselves at the cost of public welfare and common good...in order to inculcate respect for laws, the petitioners are saddled with costs of Rs 10 lakh

The judgment is excellent

hope other states in India also follow the same and learn to charge entertainment taxes and not to fill someone pockets or get other benefits.

Reality views by sm –

Monday, February 06, 2012

Tags - Kashmir Fine 7 companies Rs.200 Crore