BHUBANESWAR  WEDNESDAY  FEBRUARY 12, 2025  `9.00  PAGES 14  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 P R E E T H A N A I R & D I PA K M O N D A L @ New Delhi 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 February 11 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 Let’s build global AI framework to enhance trust: PM 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.” 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 President Donald Trump’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 es- tablish 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 . 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 THE New Income Tax Bill, which will be tabled in Parliament on Thursday is longer than the ex, isting 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 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 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 F-35 pilots wear helmet-mounted display which helps strike a target by simply looking at it 3 EXPRESS READ Bhakta Das OPCC chief; Moquim, Srikant ignored Bhubaneswar: The Congress on Tuesday appointed senior party leader and former Union minister Bhakta Charan Das as the next president of the Odisha Pradesh Congress Committee. Das will succeed Sarat Pattanayak who had resigned in July last year after the dismal performance of the party in the Assembly and Lok Sabha elections | P3 Canada, Europe vow firm response to US steel tariffs Paris: Canada and the EU vowed on Tuesday to stand firm against US President Donald Trump’s move to impose tariffs on steel and aluminium imports, pushing Washington further towards a trade war with key global partners. Trump signed executive orders to impose 25% tariffs on steel and aluminium imports from March 12, triggering a flurry of reactions and promises to protect workers | P11 SEVEN banks have cut their repo-linked lending rates (EBLR) in response to the Reserve Bank of India’s 25 basis-point rate cut announced on Friday Over Monday and . Tuesday, 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. ` 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 new law is crisp and clear, and it includes past judicial decisions, bringing more clarity “The new . law is longer, but it has given straight-jacketed 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. EXPRESS NEWS SERVICE @ Bhubaneswar TRIPLE riding and moving on the wrong side of the road cost three teenagers their lives when their motorcycle was hit by a car near Tankapani Sai temple road on the Cuttack-Puri bypass here late on Monday night. The deceased have been identified as Subham Mohanty alias Sibu (15) from Haldiapadia slum in Laxmisagar; Kanha Khuntia (18) from Trinath temple lane, Laxmisagar; and Arakhit Behera (18) from Banapur in Khurda. Badagada IIC Trupti Ranjan Nayak said the SUV was on its way to Puri when the motorcycle came in front of it and both collided. The incident took place at around 2 am in the night. “Upon getting information from the locals, our police team rushed to the spot and took the victims to the Capital Hospital where they were declared received dead,” he said. According to sources, the extent of damage showed both the vehicles were travelling in highCONTINUED ON P7 speed. State govt to merge Mamata with PMMVY, raise incentive for birth of girl child to `12K EXPRESS NEWS SERVICE @ Bhubaneswar THE state government on Tuesday announced to integrate its Mamata scheme with Pradhan Mantri Matru Vandana Yojana (PMMVY) and provide an enhanced cash incentive of `2,000 to women on delivery of a girl child. As per the decision taken by Chief Minister Mohan Charan Majhi, women with a newborn son will receive `10,000, while those with a newborn daughter will receive `12,000. The cash incentive is being provided for taking care of the health and 7 banks cut lending rates to give you quick relief B E N N K O C H U V E E D A N @ Mumbai Bike-car collision kills three in city 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 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 repolinked 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%. nutrition of both the mother and the child. This assistance will be provided for a maximum of two children, except those who belong to the Particularly Vulnerable Tribal Groups (PVTGs). The initiative will benefit around 4.5 lakh pregnant and lactating women. The initiative aims to improve the health and well-being of pregnant women and lactating mothers, as well as promote gender equality The scheme is part of . the government’s efforts to em- power women and reduce poverty in the state, the chief minister’s office said. Majhi has also approved the proposal to increase incentives of anganwadi workers from `200 to `250 and anganwadi helpers to `150, up from `50. The cash assistance is expected to cost around `511 crore to the government from the 2025-26 financial year. The contribution of the central government will be `115.97 crore while the state government will provide `395.75 crore.