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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Sambhal violence: Prohibitory orders issued, outsiders barred from entry till Nov 30
Sambhal (UP) (PTI): The district administration has imposed prohibitory orders and barred the entry of outsiders till November 30 after three men were killed and scores of others, including security and administration personnel, injured in a violence by protesters opposing a court-ordered survey of a Mughal-era mosque.
The order has been issued under provisions of the Bharatiya Nyaya Sanhita (BNS), said District Magistrate Rajender Pensiya late on Sunday.
"No outsiders, other social organisations or public representatives will enter the district border without the permission of the competent officer," said the order, which came into force with immediate effect.
Violation of the order will be punishable under Section 223 (disobedience to order duly promulgated by public servant) of the BNS.
Violence broke out in the district on Sunday as protesters opposing the survey of the Jama Masjid clashed with security personnel. The protesters torched vehicles and pelted the police with stones while the security personnel used tear gas and batons to disperse the mob.
Divisional Commissioner (Moradabad) Aunjaneya Kumar Singh said on Sunday, "Shots were fired by miscreants... the PRO of the superintendent of police suffered a gunshot to the leg, the circle officer was hit by pellets and 15 to 20 security personnel were injured in the violence."
A constable also suffered a serious head injury while the deputy collector fractured his leg.
"Three people, identified as Naeem, Bilal and Nauman, have been killed," Singh said.
Twenty-one people, including two women, have been detained and a probe has been launched, the official had said, adding that those accused in the violence would be booked under the stringent National Security Act (NSA).
District Magistrate Rajender Pensiya said, "The casualty count stands at three. The reason for the deaths of two is clear -- bullet wounds from countrymade pistols. The reason for the death of the third person is not clear but it will be after post-mortem."
Internet services were soon suspended in Sambhal tehsil for 24 hours and the district administration declared a holiday in all schools for Monday.
Tension had been brewing in Sambhal since November 19 when the Jama Masjid was first surveyed on the court's orders following a petition claiming that a Harihar temple had stood at the site.
Trouble started early on Sunday when a large group of people gathered near the mosque and started shouting slogans as the survey team began its work.
District officials said the survey could not be completed on Tuesday and was planned for Sunday to avoid interference with afternoon prayers.
Supreme Court lawyer Vishnu Shankar Jain, who is a petitioner in the case, had earlier said the Court of Civil Judge (Senior Division) ordered the constitution of an "advocate commission" to survey the mosque.
The court has said a report should be filed after conducting a videography and photography survey through the commission, he had said.
On Sunday, Jain urged the Archaeological Survey of India to take control of the "temple".
Gopal Sharma, a local lawyer for the Hindu side, had earlier claimed the temple that once stood at the site was demolished by Mughal Emperor Babur in 1529.
