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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Iran, US receive proposal for 45-day ceasefire and reopening of Strait of Hormuz
Dubai (AP): Iran and the United States received a draft proposal late Sunday calling for a 45-day ceasefire and the reopening of the Strait of Hormuz, two Mideast officials speaking on condition of anonymity told The Associated Press.
The proposal comes from Egyptian, Pakistani and Turkish mediators, hoping the 45-day window would provide enough time for talks to reach a permanent ceasefire. Iran and the US have not responded to the proposal, which was sent to Iranian Foreign Minister Abbas Araghchi and US Mideast envoy Steve Witkoff, the officials said.
The head of intelligence for Iran's paramilitary Revolutionary Guard was killed Monday in an attack targeting him, Iranian state media said.
Strikes on cities across Iran have killed more than 25 people from Sunday to Monday, while in Israel's Haifa, two people were found dead and two others were missing in rubble a day after an Iranian attack.
US President Donald Trump on Sunday stepped up his threat to hit Iran's critical infrastructure hard if the country's government doesn't reopen the Strait of Hormuz by his Tuesday deadline.
Trump punctuated his threat with profanity in a social media post, saying Tuesday will be “Power Plant Day, and Bridge Day, all wrapped up in one, in Iran.”
The war began with joint US-Israel strikes on Feb. 28 and has killed thousands, shaken global markets, cut off key shipping routes and spiked fuel prices. Both sides have threatened and hit civilian targets, bringing warnings of possible war crimes from the United Nations and international law experts.
Here is the latest:
An Iranian drone strikes the UAE telecommunications building
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An Iranian drone attack damaged a telecommunications building in Fujairah in the United Arab Emirates on Monday, the state-run WAM news agency reported.
The attack targeted a building of the state-funded du telecom company.
No one was injured, WAM reported, quoting officials in Fujairah.
South Korea's spy agency sees no signs of North Korea supplying Iran
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South Korea's National Intelligence Service says there are no signs North Korea is providing Iran with weapons or other war-related supplies.
The spy agency's officials told lawmakers Monday that North Korea may be taking a cautious approach to preserve the possibility of dialogue with the Trump administration, according to two lawmakers who attended the closed-door briefing.
North Korea's Foreign Ministry has condemned the US-Israeli attacks on Iran as illegal, but the NIS said Pyongyang has not sent an official condolence message over the death of Ayatollah Ali Khamenei, Iran's late supreme leader.
North Korean leader Kim Jong Un, in recent years, has embraced the idea of a “new Cold War” and attempted to expand cooperation with countries confronting the US, including an economic delegation sent to Iran in April 2024.
South Korea plans to send ships and special envoys to Saudi Arabia
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South Korea plans to send at least five ships to Saudi Arabia's Yanbu port in the coming weeks to establish new oil transport routes in the Red Sea.
The Ministry of Trade, Industry and Resources said Monday the ships will be deployed in phases beginning in mid-April, and the number of vessels could increase depending on contracts with Saudi partners.
Officials did not disclose the companies involved but said some domestic refiners may use non-Korean shipping firms.
South Korea also plans to send special envoys to Saudi Arabia, Oman and Algeria to step up diplomatic efforts to secure alternative fuel supplies, ruling party lawmaker Ahn Do-geol said.
The foreign ministry did not immediately reveal when the envoys would be sent.
Iran executes a man over the January protests
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Iran has executed another man convicted over charges stemming from the nationwide protests that swept Iran in January.
The judiciary's Mizan news agency identified the man hanged as Ali Fahim in a report on Monday.
It was unclear when he was executed.
Fahim had been convicted of allegedly storming a military base to seize weapons.
Amnesty International said Fahim and others convicted in the case “were subjected to torture and other ill-treatment in detention, including beatings, floggings, prolonged solitary confinement, and death threats at gunpoint before being convicted in grossly unfair trials that relied on forced confessions extracted under torture and lasted only a few hours.”
The Human Rights Activist News Agency had said Fahim and others had entered a Tehran base of the all-volunteer Basij militia, an arm of the Revolutionary Guard, after it had been burned, then had been forced into confessions.
Iranian missiles hit central Israel
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Israeli rescue services reported Monday morning that several sites were hit by missiles launched from Iran toward multiple cities in the centre of Israel.
In Petah Tikva, paramedics provided medical treatment to an injured woman in serious condition with a chest injury from shrapnel and evacuated her to the Beilinson Hospital.
Firefighters in that city are handling cars on fire and continue searching to ensure there are no people trapped in the rubble.
In Tel Aviv, a man slightly injured by glass shrapnel was evacuated to the Ichilov Hospital.
Footage provided by the rescue service Magen David Adom shows damage to residential buildings due to the attack.
Meanwhile, Israel's military warned the public Monday morning of another missile barrage coming from Iran, the fourth such alert of the day.
