Chennai l wednesday l february 12, 2025 l `9.00 l PAGES 20 l 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 | P9 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 PREETHA NAIR & DIPA K MONDA L @ New Delhi 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 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 captain among 2 killed Says the new tech is writing code for humanity 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- in j&k ied blast 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 . Existing I-T Act to be repealed w.e.f. April 1, 2026 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 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 The two soldiers, Captain Karamjit Singh Bakshi and Naik Mukesh, were on patrolling duty when they were hit by a powerful explosion near a forward post in Bhattal area of Akhnoor in Jammu around 3.50 pm; a third soldier accompanying them is in a hospital and out of danger | P10 Salem boy dies after scuffle in pvt school van Express News Service F-35 Lightning II @ Coimbatore 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 F-35 pilots wear helmetmounted display which helps strike a target by simply looking at it 3 Couple, son-in-law die 7 banks cut lending rates to give you quick relief of injuries from cylinder blast at Nungambakkam BENN K OCHUVEEDAN @ Mumbai Gunasekaran succumbed to his burns on Sunday, his in-laws on Monday | Express Express News Service @ Chennai Three members of a family, who sustained severe burns in a fire that broke out following an LPG leak in their house, died at Kilpauk Medical College on Sunday and Monday . The deceased have been identified as R Veerakumar (62), a daily wage labourer; his wife V Lakshmi (54), a domestic maid, and their son-in-law T Gunasekaran (45), a private company employee. Gunasekaran was a resident of Kodungaiyur, police said. His place of work was nearby and every day after work he would come to his in-laws’ house in Nungambakkam and wait for his wife who was employed in the area. Together they would leave for Kodungaiyur, they added. Police said the incident happened around 6 pm last Tuesday when Lakshmi was replacing an empty cylinder with a filled one. After Gunasekaran alerted Lakshmi about the odour, she tried to turn the knob off, but it failed to plug the leak, they said. Speaking to TNIE, Venkatesan (36), Lakshmi’s nephew, said, “Just as Gunasekaran was asking my aunt whether the lamp in the living room was still burning, the gas engulfed the room, leading to the fire.” Gunasekaran managed to save Lakshmi’s elderly mother, who was sleeping in another room, by pouring a can of water there and shutting the door. However, Gunasekaran and Veerakumar sustained more than 70% burns, and Lakshmi 55%, police added.  P7 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 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. 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 cost-based 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 EBLRlinked loans get rep r i c e d p ro n t o bu t MCLR-linked loans take two quarters to reflect the change in rates. About 40% of the banking system’s loans are linked to the EBLR, and a similar percentage of loans are linked to the MCLR. While most retail loans are linked to an external benchmark, corporate loans are linked to the MCLR. PNB reduced its repo-linked lending rate by 25 bps to 9%, Bank of Baroda cut it to 8.9% from 9.15%. Bank of India, Indian Bank, and UCO Bank cut the lending rate by 15-25 bps. Private lenders RBL Bank and Karur Vysya Bank reduced their repo-linked lending rate by 25% to 11.35%. HDFC Bank, which is yet to announce EBLR rate cut, has increased its MCLR loan prices by 5 bps to 9.20%. In a shocking incident, a 14year-old student of a private school near Edappadi in Salem district collapsed on Monday evening during a scuffle with a classmate, and died at a private hospital the next day without responding to treatment. Edappadi police have filed a case and initiated an investigation into the matter. According to police, the deceased and his classmate hail from the same village near Edappadi. On Monday while re, turning home in the school van around 4.50 pm, the deceased occupied a seat usually used by the classmate, triggering the scuffle between the duo. As the boys came to blows, the former suddenly collapsed. The other students in the van alerted the driver who rushed the boy to a nearby private hospital, police said. Doctors there examined and referred him for advanced treatment to another private hospital in Salem city that evening. He was admitted to the ICU there but died early on Tuesday morning. Police sent the boy’s body for postmortem examination and launched an investigation into the death. Cops questioned other students and the classmate who had allegedly fought with the deceased boy  . P7 Sama g r a S h i k s h a s c h eme Govt schools bear full brunt as TN, centre tussle over funds S u b a s h i n i V i j aya k u m a r @ Chennai The fund crunch has halted self-defence classes for girls in 15,000 schools | file pic As the state and central governments spar over the release of Samag ra Shiksha (SS) scheme funds, it is the government schools in Tamil Nadu that continue to bear the brunt. The delay in release of funds has halted the self-defence classes for girls in government schools, release of the second installment of maintenance grants and held up the release of salaries for temporary teachers in some schools. Due to the fund crunch, the school education department is yet to release funds to conduct the three-month self-defence courses for girls in classes 6 to 12 in over 15,000 government middle, high and higher secondary schools. Under this initiative, students are trained in karate, judo, taekwondo and silambam along with techniques to use everyday objects, such as dupattas, keychains, bags, pens and pencils, for self-defence. Each school is allotted `5,000 per month to pay trainers and provide snacks for the students under the SS scheme at a cost of `19 crore. The programme has now been halted. The department also allocates annual school grants for the maintenance of all 37,471 government schools across TN. This year, `125 crore was earmarked for the purpose and the first installment of `62 crore was released last July  . P7