Bengaluru civic body has to pay service tax on computer education for students: K'taka HC
Bengaluru (PTI): The High Court of Karnataka has held that the Bruhat Bengaluru Mahanagara Palike (BBMP) is liable to pay service tax on the computer education for students of economically weaker sections it had outsourced to a private agency.Rejecting the contention of the civic body that it was exempted from paying service tax, the HC in its judgement said, "the Corporation availing the services of the petitioners to render computer education to persons belonging to economically weaker section as regards which the Corporation has made the payment of monies to the petitioners would be amenable to service tax, that is to say, it is not exempted from service tax."
Vasundhara AGK of Synergy Computer Education, NH Muralidhar of Systel Infos and Amba Prasad NH of Suftpro Technologies, had filed petitions before the HC seeking a direction to the BBMP to pay the service tax.
The petitions filed in 2015, were heard by Justice Suraj Govindaraj who gave a common judgement on the three petitions recently.
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The BBMP had introduced a scheme to impart computer education to persons belonging to economically weaker sections. Three private institutions were hired for a period of three years to provide the services. The three institutes were paid Rs 3,500 for every candidate but the payments were not regular.
The institutes had to approach the HC to get a direction for payment. Even after that, the BBMP paid only the fixed amount, but not the service tax. The BBMP claimed that it had received legal advice that it was not liable to pay service tax. The three institutes then approached the HC again.
In a claim before the HC, the BBMP said, "whenever there is a local authority which is involved in a transaction service, there would be no service tax which is required to be paid and local authority is exempted from such service tax."
Sub-section (a) of Section 66D of Finance Act, 1994 was cited by the BBMP which exempted it from service tax.
The HC in its order, however, noted that BBMP would be exempted only if it had provided the service.
"For that purpose, a service would be required to be provided by the government or local authority and it is the government or local authority which is required to receive the charges towards such service rendered as regards which there would be no service tax payable," it said.
But in the present case, it was not the BBMP which had provided the service but the institutes.
"Though at first blush it may appear that services are rendered by the Corporation to the concerned candidate but in effect what has occurred is the petitioners have rendered the services on behalf of the Corporation to such candidates as regards which the Corporation has made payment of monies to the petitioners. Thus, when the Corporation makes such payment on a transaction with the petitioners, the service providers would be the petitioners and those who avail the service would be the Corporation and as such, it cannot be said to be that services are provided by the Corporation," the court added.
Allowing the petitions and directing the BBMP to pay the service tax to the three institutes, the HC said, "I am of the considered opinion that the present transaction would not come within the purview of sub-section (a) of Section 66D of Finance Act, 1994."
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Marxism will remain relevant despite Left electoral's losses, says general secretary M A Baby
New Delhi (PTI): CPI(M) General Secretary M A Baby on Thursday asserted that the Left movement would remain relevant despite not being in power in any state, saying the ideology would continue to endure as long as social and economic inequalities persist.
Hitting back at BJP leader Rajeev Chandrasekhar over his reported remarks that Marxism had become irrelevant, Baby, in an interview with PTI Videos, said, "So long as there is division in society, so long as there is exploitation of the majority of workers, peasants and ordinary masses by a handful of billionaires, Marxism will remain relevant."
"That perhaps Mr Rajeev Chandrasekhar may not be able to understand, but this is the fact of the matter," he said.
Baby acknowledged that the CPI(M)-led Left was currently without an elected government in any state, but maintained that electoral setbacks would not diminish the movement's role.
"We may not have an elected government in any state. There were occasions when we didn't have a government. But the red flag and the commitment to organise and struggle for the rights of the dispossessed, marginalised and exploited will always be upheld by CPI(M) and the Left movement," he said.
He said the Left continued to enjoy support among workers, peasants, agricultural labourers, youth, students and women, and argued that the movement remained necessary because "oppression and assault" continued in society.
"So long as such problems exist in society, the red flag and the working class movement will continue to work among the masses," the Left leader said.
Exuding confidence on the Left's revival, Baby said the party would reflect on the reasons behind its electoral loss.
"We may be rejected in one election, but we will stage our comeback by understanding what went wrong with us," he said, adding, "We will listen to people and we will come back with higher strength."
Baby also criticised the Congress over reported factional tensions in Kerala after the Congress-led United Democratic Front's victory in the state.
"The way they are behaving is being watched by the people of Kerala," he said, referring to infighting within the Congress.
"Those who have given a massive majority to Congress and UDF would be watching all this," he added, while urging party leaders to "settle the problem in an amicable, democratic manner".
Referring to West Bengal, Baby alleged that violence had escalated following the BJP's victory in the state assembly polls.
"It is quite unfortunate that the moment BJP snatched a massive victory in West Bengal, violence has also started on a big scale," he said.
He also accused the Trinamool Congress of being "notorious for violent activities" and alleged that the "RSS-controlled BJP" had "unleashed violence in many places" after the election results.
"This is not good for Bengal, not good for the country. We wish and hope that normalcy would be restored as soon as possible," he said.
Baby said the CPI(M) and the Left in West Bengal would continue efforts to "pacify people" and avoid violence and confrontation.
Asked about former Kerala chief minister Pinarayi Vijayan not reacting publicly to the election results, Baby said Vijayan would respond "at an appropriate time".
