2013 wednesdAY 12 Lottery distributors need not pay service tax to centre february, 2025 epaper.morningstandard.in facebook.com/TheMorningStandard X.com/TheMornStandard When the Centre moved SC on a plea filed by Future Gaming The Supreme Court dismissed pleas of the Centre and held service tax cannot be levied on promotion, marketing, or sale of lottery tickets | P7 k n i f e at ta c k Rushdie takes stand in court Author Salman Rushdie took the stand in a New York courtroom to testify against the man charged with stabbing him in a knife attack in 2022. Page 9 A CAPITAL VIEW OF NEWS l New Delhi l J8.00 File photo 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” New, simplified tax bill to be tabled in LS tomorrow manipur Central rule buzz as no consensus yet on new CM PREET H A NAIR & DIPAK MONDA 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 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.” PAGES 12 l ‘no service being rendered by respondent’ 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 US, 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 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 President Donald Trump’s removal of previous safeguards to pave the way for a new technological race. Modi, who co-chaired the summit with President Emmanuel Macron in Paris, also announced that 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- lish governance and standards, that uphold our shared values, address risks, and build trust,” Modi told the gathering of world leaders that included US vice president J D Vance and Chinese vice-premier Zhang in his opening remarks. “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,” Modi said. “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,” he said. 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 P7 . 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 B’desh EC says ready for elections in Dec 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 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 poll panel on Tuesday said preparations were underway to hold elections by December as nationwide vandalisms over the past week prompted interim govt chief Muhammad Yunus to agree to the proposal. Yunus had assured former PM’s Khaleda Zia’s BNP to hold elections by December. | P9 Express read NCW issues summons to Allahbadia, Samay Raina Amid a raging controversy over YouTuber Ranveer Allahbadia’s crass comments during the ‘India’s Got Latent’ show, the National Commission for Women on Tuesday issued summons to the podcaster, comedian Samay Raina and other participants of the reality programme. | P7 F-35 Lightning II F  ifth-generation Single-seat, single-engine A  ll-weather, multi-role S  tealth aircraft SHOWSTOPPER The Lockheed Martin-made fighter jet vowed 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 Kharge, Rahul not to attend K’taka biz meet Congress president Mallikarjun Kharge and LoP Rahul Gandhi will not be attending the ‘Invest Karnataka Summit 2025’ in Bengaluru, beginning Wednesday, due to their preoccupation in Parliament, said AICC general secretary, communications, Jairam Ramesh on Tuesday. Extend full cooperation 7 banks cut lending rates to give you quick relief to civic bodies on traffic Captain killed in J&K ied explosion management, cops told B ENN KOC H UVEEDAN @ Mumbai S h e k h a r S i n g h @ New Delhi The Delhi High Court has issued a stern directive, emphasising that police must extend full cooperation to municipal and local bodies for implementing traffic management plans across the national capital. A division bench comprising Chief Justice Devendra Kumar Upadhyay and Justice Tushar Rao Gedela was hearing a public interest litigation (PIL) filed by one Amal Sharma, highlighting the city’s growing menace of haphazard parking. During the hearing, the Municipal Corporation of Delhi (MCD) submitted a status report, reveali n g t h a t P a rk i n g A r e a Management Plans (PAMPs) had been prepared for 17 locations, with implementation underway at two sites. The New Delhi Municipal Council (NDMC) also informed the court that similar plans were in the pipeline for sites under its jurisdiction. However, the MCD counsel raised a significant roadblock— resistance from the public, which often hampers execution. The corporation stressed the urgent need for the Traffic Department’s cooperation to enforce these plans effectively . The bench took serious note of the issue and directed the Delhi government to file its response. The court also made it clear that wherever municipal bodies face challenges in enforcing traffic plans, local and traffic police must offer their complete support. “We also direct that wherever such plans are being implemented and th e munic ip al body/local authority seeks any cooperation or protection from either the local police or local traffic police, the police authorities concerned shall extend their fullest cooperation so that the traffic management plans are implemented,” the court directed. The NDMC has also been instructed to submit a detailed status report outlining the steps taken for preparing and implementing traffic management strategies. A Captain among two Army personnel were killed and another injured when terrorists set off an IED near the LoC in Akhnoor sector on Tuesday. This was the third incident of crossborder attacks by terrorists in the Jammu region in four days. | P8 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 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%. Atishi no-show at Kejriwal-Punjab MLAs’ meet raises eyebrows a n u p va r m a & H a r p r e et Ba j wa @ New Delhi/Chandigarh In Delhi, Punjab CM Bhagwant Mann said no threat to his government | Parveen negi ‘Nothing to soothe frayed nerves of Mann’ Punjab BJP chief Sunil Jakhar hit out at Bhagwant Mann, saying, “The meeting did nothing to soothe the frayed nerves of CM.” In a sharp retort, AAP said, “Jakhar’s situation is like ‘Na ghar da, na ghat da’.” SAD claimed the meet was to put the blame on Punjab leadership for Delhi loss. | P3 Amid rumours of a rift within the Punjab unit of the AAP, Arvind Kejriwal on Tuesday convened in the capital a meeting of the party’s MLAs and MPs from the neighbouring state. However, caretaker CM Atishi was conspicuous by her absence from the meeting. Although AAP leaders stated that the party chief called the meeting to thank Punjab members members for contributing to the Delhi assembly election campaign, the absence of several key leaders from the national capital suggested a different narrative. Manish Sisodia attended the meet, but neither Atishi nor the party’s Delhi State Convener Gopal Rai, was present. In the midst of reports suggesting unrest within the Punjab unit, Tuesday’s meeting was of added significance. Speculation is growing that some MLAs are dissatisfied with the leadership and may explore other options. There is also speculation that Kejriwal could now consider a more direct role in Punjab politics. According to sources, during the meeting, Kejriwal urged the Punjab leaders to be united and work among the public as winning the 2027 assembly elections is the party’s target and he can spend considerable time in the neighbouring state. Punjab CM Bhagwant Mann reportedly told the legislators that all the promises made to the public will be fulfilled. After the meeting, he told reporters that all was well in the party in Punjab. P3