HYDERABAD  WEDNESDAY  FEBRUARY 12, 2025  `9.00  PAGES 16  LATE CITY EDITION LOTTERY DISTRIBUTORS NEED NOT PAY SERVICE TAX TO CENTRE The Supreme Court dismissed pleas of the Centre and held service tax cannot be levied on promotion, marketing, or sale of lottery tickets File photo ‘NO SERVICE BEING RENDERED BY RESPONDENT’ ‘ONLY STATES CAN IMPOSE TAX ON LOTTERY’ A bench comprising Justices B V Nagarathna and N K Singh held, “At each stage, the amendments made to the Finance Act, 1994, in order to impose service tax on the sole distributor/purchaser of the lottery tickets have been unsuccessful... There being no service rendered by the respondents (lottery sellers in Sikkim) to Sikkim govt, hence service tax is not leviable” ■ ■ The Supreme Court upheld a recent Sikkim High Court order which had held that lottery comes within “betting and gambling” in Entry 62 of state list and only the state can impose any tax | P7 The Centre said it was entitled to impose service tax since the activity was an auxiliary service under Section 65(19) of Finance Act, ’94 2013 WHEN THE CENTRE MOVED SC ON A PLEA FILED BY FUTURE GAMING CHENNAI ■ MADURAI ■ VIJAYAWADA ■ BENGALURU ■ KOCHI ■ HYDERABAD ■ VISAKHAPATNAM ■ COIMBATORE ■ KOZHIKODE ■ THIRUVANANTHAPURAM ■ BELAGAVI ■ BHUBANESWAR ■ SHIVAMOGGA ■ MANGALURU ■ TIRUPATI ■ TIRUCHY ■ TIRUNELVELI ■ SAMBALPUR ■ HUBBALLI ■ DHARMAPURI ■ KOTTAYAM ■ KANNUR ■ VILLUPURAM ■ KOLLAM ■ TADEPALLIGUDEM ■ NAGAPATTINAM ■ THRISSUR ■ KALABURAGI New, simplified tax Bill to be tabled in LS tomorrow MANIPUR Central rule buzz as no consensus yet on new CM P R E E T H A N A I R & D I PA K M O N D A L P R A S A N TA M A Z U M D A R & P R E E T H A N A I R @ Guwahati/New Delhi THE leadership vacuum in Manipur deepened as the BJP failed to find a consensus candidate to succeed caretaker Chief Minister N Biren Singh, sparking speculations that the state may be placed under President’s rule. The party’s Northeast incharge, Sambit Patra, met with Governor Ajay Kumar Bhalla Tuesday evening after separate closed-door huddles with BJP MLAs over the past two days. Earlier in the day, Congress leader Jairam Ramesh had flagged the possibility of Central rule. He said, Article 174 (1) stipulates that there cannot be more than a 6-month gap between the last sitting of an Assembly session and the first sitting of the next Assembly session. And Fe b r u a r y 1 1 was the last day for a constitutionally-mandated sitting of the Assembly’s session, he said. But Constitutional expert PDT Achary had a different take. “What Jairam Ramesh says is not correct. It is not a violation of Article 174 (1) as there is no constituted government in office now. When the government is not there, there is no question of convening the assembly. Hence, the deadline of six months doesn’t operate here. Governor can recommend President’s rule under Article 356 if parties fail to come up with a new CM option,” he opined. Constitutional nuances apart, BJP appears to be divided into two factions: one loyal to Biren Singh and the other comprising MLAs opposed to him. A senior BJP MLA said the Centre might impose President’s rule in the state. “I feel the order will be out anytime soon. They will keep the Assembly in a suspended animation under Article 356 and not dissolve it.” Prime Minister Narendra Modi with France President Emmanuel Macron and US Vice President J D Vance (R) in Paris | PTI NEW TECH CHANGES JOB TYPES Stating that loss of jobs is AI’s “most feared disruption”, Modi said: “But, history has shown that work does not disappear due to technology. Its nature changes and new types of jobs are created. We need to invest in skilling and re-skilling for an AI-driven future.” DIVERGENCE AMONG U.S, EU & CHINA Trump’s actions show the growing differences in the strategies to regulate AI between the US, China and the EU. So far, the US and UK haven’t come around to sign a joint statement on the outcomes of the meeting We must democratise tech, create peoplecentric applications and address concerns on cyber security, disinformation etc Narendra Modi, PM Let’s build global AI framework to enhance trust: PM J AYA N T H J A C O B @ New Delhi PRIME Minister Narendra Modi on Tuesday said artificial intelligence (AI) is writing the code for humanity in this century by transforming politics and society, and sought global cooperation to establish governance that addresses risks and fosters trust. His call came at a time when the European Union is moving towards a more relaxed AI regulatory approach to remain competitive, following US Presid e n t D o n a l d T r u m p ’s removal of previous safeguards to pave the way for a new technological race. Modi, who co-chaired the summit with French President Emmanuel Macron in Paris, said India would be happy to host the next edition of the Summit. “AI is writing the code for humanity in this century… AI is developing at an unprecedented scale and speed. And being adopted and deployed even faster. There is also a deep inter-dependence across borders. Therefore, there is a need for collective global efforts to estab- @ Hyderabad WITH authorities in neighbouring Andhra Pradesh confirming avian influenza (H5N1), more commonly known as “bird flu”, the Telangana government has directed officials of the Animal Husbandry department to remain on alert and prevent its spread. Accordingly, entry of vehicles transporting poultry into Telangana has been restricted. The state government has set up 24 checkposts to inspect vehicles. Poultry vehicles, particularly from AP, are being stopped from crossing over. In his orders, Animal Husbandry department Special Chief Secretary Sabyasachi Ghosh asked district collectors to create awareness among the poultry farmers, other stakeholders and the public regarding prevention of Highly Pathogenic Avian Influenza (HPAI) cases and the critical role of biosecurity measures. Ghosh also directed the proper disposal of dead birds and said any poultry deaths should be brought to the notice of staff. Meanwhile, Alampur mandal animal husbandry officer Dr K Shankaraiah, discharging his duties on the AP-Telangana border, confirmed that they had intercepted and sent back seven vehicles carrying poultry in the past 24 hours. On Tuesday alone, two vehicles transporting 30,000 chicks from Tamil Nadu’s Tiruppur to Kamareddy district were turned away at Pulluru toll plaza, Dr Shankaraiah confirmed. Meanwhile, reports claimed that the chicks were sold in Kurnool district, as they could not have survived in the trucks for over 60 hours. Earlier, the Bhopalbased National Institute of High-Security Animal Diseases confirmed that the samples collected from a poultry farm in Velpur village of Tanuku mandal, West Godavari district following the death of several chickens were H5N1 positive. The virus was also detected in East Godavari. As per protocol, poultry eggs, , and feed are destroyed within the infected zone, and their movement is completely banned. Poultry and egg shops in the surveillance zone are closed. lish governance and standards, that uphold our shared values, address risks, and build trust,” Modi told the gathering of world leaders that inclued US vice president J D Vance and Chinese vice-premier Zhang Guoqing. “While the positive potential of AI is absolutely amazing, there are many biases that we need to think carefully about,” Modi said. Laying a roadmap of what should entail the governance of AI, Modi called for promoting innovation and deploying it for the global good. “So, we must think deeply and discuss openly about innovation and governance,” he said, adding: “Governance is also about ensuring access to all, especially in the Global South. It is where the capacities are most lacking — be it compute power, talent, data, or the financial resource.” Modi emphasised the need to create open-source systems that foster trust, build unbiased data sets, democratise tech, and develop people-centric applications, while also addressing cyber security . related deduction. It proposes stronger regulations for crypto-assets and digital transactions, and a simplified refund process. The bill uses the term ‘tax year’ instead of ‘previous year’ to streamline the reporting process. The bill has simplified legal terms to reduce litigation due to multiple interpretations. According to a chartered accountant who reviewed the bill, the new law is crisp and clear, and it includes past judicial decisions, bringing more clarity. “The new law is SC: EVM DATA SHOULD NOT BE ERASED Seven banks cut lending rates to give quick relief B E N N K O C H U V E E D A N @ Mumbai F-35 LIGHTNING II Fifth-generation Single-seat, single-engine All-weather, multi-role Stealth aircraft SHOWSTOPPER The Lockheed Martin-made fighter jet wowed spectators at Aero India as it took to skies on Monday 1 F-35s are designed to perform ground attack, aerial reconnaissance, and air defence 2 EXPRESS NEWS SERVICE @ Hyderabad  Ellammalwar, Emmlama Vandlu, Panchama and Paraya castes should be in Group 3 instead of Group 2. Similarly, Paki, Moti, Toti and Relly castes should be in Group 1 instead of Group 3.  Castes including Mala, that have enjoyed more social, economic, political, educational and employment benefits, should be listed in Group 4. longer, but it has given straightjacketed answers to a number of issues,” said the CA. Under the new bill, the Central Board of Direct Taxes and finance ministry get more powers to issue rules, notifications, and exemptions through delegated legislation. Rajat Mohan, senior partner, AMRG Associates, said businesses expect the bill to deliver a growth-friendly tax regime while ensuring policy stability . “Key demands include rationalised corporate tax rates, structured capital gains taxation, among others,” he said. The Supreme Court has asked the Election Commission not to erase or reload the data in the EVMs while carrying out the verification process. It was hearing a plea seeking directions to the EC to allow verification of the burnt memory and Symbol Loading Units of the EVMs | P7 F-35 pilots wear helmetmounted display which helps strike a target by simply looking at it 3 MRPS chief meets CM to push for 4 groups of SCs MANDA’S MESSAGE  The Commission’s recommendations regarding reservations for the Madiga caste and its sub-castes were disproportionate to their population. In the case of Malas, the Commission recommended more reservations than their population. This has to be rectified.  Castes such as Manne, Kolupula Vandlu, Pambada, Pambala, Mundala and Samban, which are more advanced socially, economically, educationally and politically, have been added to Group 1. These castes should be moved to Group 3. After Parliament clears the new bill, it will replace the existing Income Tax Act, which has been in force since 1962. The Act will be repealed effective from April 1, 2026. Tax proceedings for years prior to April 1, 2026 will follow provisions of the 1961 Act. The new bill runs into 600 pages as against 880 pages in the existing one THE New Income Tax Bill, which will be tabled in Parliament on Thursday, is longer than the existing one with 23 chapters, 536 sections and 16 schedules. The current Income Tax Act has 23 chapters, 298 sections and 14 schedules. The increase in number of sections reflects a more structured approach to tax administration, incorporating modern compliance mechanisms, digital governance, and streamlined provisions for businesses and individuals. The bill, a copy of which is in the possession of this paper, proposes a deduction for purchase of electric vehicles, revises donation rules, and updates medical and education Says the new tech is writing code for humanity TG bars entry of poultry after AP reports bird flu EXPRESS NEWS SERVICE Existing I-T Act to be repealed w.e.f. April 1, 2026 @ New Delhi REITERATING his commitment to ensuring justice to the Madiga community and its sub-castes, Chief Minister A Revanth Reddy on Tuesday said the SC categorisation exercise taken up by his government will help avoid legal complications. The CM was interacting with a delegation led by Ma- diga Reservation Porata Samithi (MRPS) chief Manda Krishna Madiga at his residence. During the meeting, Manda Krishna discussed SC sub-categorisation and alleged lapses in the Justice Shameem Akthar Commission report. Manda Krishna urged the CM to categorise SCs into four groups, instead of three as recommended by the judicial panel. CONTINUED ON P4 SEVEN banks have cut their repo-linked lending rates (EBLR) in response to the Reserve Bank of India’s 25 basispoint rate cut announced on Friday Over Monday and Tues. day, Bank of Baroda, Punjab National Bank, Bank of India, Indian Bank, UCO Bank, Karur Vysya Bank, and RBL Bank cut rates in the range of 15-25 bps for their existing customers. The move will reduce EMIs or the loan’s tenure—if one chooses to cut the tenure and not the EMI — on retail and small business loans. However, the two largest banks in the country—State Bank of India and HDFC Bank —are yet to pass on the rate-cut benefit to customers. Meanwhile, some lenders raised their marginal costbased lending rates (MCLR), on which most corporate loans are priced, by 5-10 bps. MCLR is the minimum interest rate below which banks can’t lend money to borrowers. After a gap of five years, RBI last week cut the repo rate— the interest rate at which it lends money to commercial banks— to 6.25% from 6.50%. When RBI lowers the repo rate, the EBLR-linked loans get re-priced pronto but MCLRlinked loans take two quarters to reflect the change in rates. SHOCKER ON THE ROAD 7 from Hyd returning from Maha Kumbh die in MP crash A J AY T O M A R @ Hyderabad SEVEN pilgrims returning to Hyderabad from the Maha Kumbh in Prayagraj died on the spot when an out-of-control truck rammed their minibus at Jabalpur in Madhya Pradesh around 8.30 am on Tuesday. Two grievously injured pilgrims were rushed to the Jabalpur Medical College for treatment. Eight of the victims were residents of Raghavendrana- gar in Medchal-Malkajgiri district while another was from Nacharam in Rangareddy district, police told TNIE. The victims were identified as Anand Kansari, Shashi Kansari, Ravi Vaishya, TV Prasad, Mallareddy, V Santosh, and Raju, while S Naveenacharya and Balakrishna Shriram were hospitalised with multiple fractures. The victims were either related or friends. As per the Jabalpur district administration, the accident took place near a canal between Mohla and Bargi villages. The truck veered into the wrong lane due to a burst tyre and rammed into the minivan. Sihora town inspector Vipin Singh told TNIE: “The cementladen truck veered onto the other side of the road due to a burst tyre and collided with the minibus, which was travelling at high speed. The truck driver fled the spot. We have formed teams and expect to arrest him CONTINUED ON P5 soon.” Mangled remains of the ill-fated minibus that was crushed between a culvert and an outof-control truck at Jabalpur in Madhya Pradesh