The High Court from the Indian state has demanded the tax department explain casino licence fees.
India.- The Bombay High Court is asking Goa’s tax department to give an explanation as to why it is imposing a service tax on casino licence fees. The Goan indirect tax department distributed notices to casinos earlier this year asking them to pay a state licence fee.
While the department asked the facilities to pay the new tax, the owners challenged the decision and argued that it had no legal ground. Abhishek A Rastogi, partner, Khaitan & Co, filed a petition with the Goa bench of the high court in which he argued that licence fees are a statutory levy.
“Demanding tax on statutory license fees is absurd. It’s like demanding a tax on passport fees paid to the government. Based on a circular, the DRI has initiated an investigation for applicability of service tax,” said Rastogi, who explained that as they’re not rendered by the state government, they’re not required.