SC stays UPís penalty on Idea Cellular for deficient stamp duty

In a relief to telecom major Idea Cellular, the Supreme Court has restrained the Uttar Pradesh government from taking any coercive action against the company for recovering alleged deficient stamp duty payable on lease agreements for installing its networks.

A bench headed by Chief Justice Altamas Kabir while issuing notice to the state government and others stayed the levy of deficient stamp duty allegedly payable by Idea Cellular on licence agreements with private persons for installing mobile towers on their roofs.

The telecom firm had challenged the Allahabad High Court's judgment that held that the licence agreements were licence deeds, thus, stamp duty was payable. However, the HC had reduced the penalty to 25% of the total alleged deficiency of stamp duty and observed that there was no concealment of facts by the company nor any malafide intention to evade the tax. The company said that such penalty was "arbitrary and illegal".

According to the petition, as per the terms of the licence agreements, no interest in the property was created in favour of the company and the agreements only permitted it to make use of the property.

Please read our terms of use before posting comments
TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
comments powered by Disqus