Tax related sops on ATF affects earnings to tune of Rs 240 crore
May, 04th 2012
Tamil Nadu government today said that provisions for certain tax-related sops on Aviation Turbine Fuel (ATF) had affected the state's tax earnings to the tune of around Rs 240 crore per year.
One such beneficiary was the Marans-owned Spicejet, Commercial Taxes Minister C Ve Shanmugam told the Tamil Nadu Assembly.
Replying to the grants for his department for the year 2012-13, he said that as part of the AIADMK government's efforts to mop up taxes,the cash-rich cricketing extravaganza, Indian Premier League ( IPL) and the Direct to Home (DTH) services have also been brought under the taxation ambit.
The multi-million Rupee Sun Group conglomerate is also a major player in the DTH sector with its Sun DTH services.
As regards the ATF, Shanmugam said certain sops on ATF had affected the state's tax prospects.
"The government is suffering a loss of around Rs 240 crore per year and one of the beneficiaries of this scheme is Spicejet," he said.
Earlier, the Minister moved a bill to further amend the Tamil Nadu Value Added Tax Act, 2006, seeking to make 'entry' regarding ATF and tax on declared goods in consonance with Central provisions under the Central Sales Tax.