Dot Asked To Pay Tax On Rentals To Up Govt

The Uttar Pradesh government today won its legal battle against the central government when the Supreme Court held that the state government could demand tax from the department of telecommunications (DoT) on the turnover of rentals collected from subscribers.

The levy was imposed under the UP Trade Tax Act. When the state government assessed the tax payable by the department, the latter challenged the validity of the orders of assessment in writ petitions before the Allahabad High Court.

The state maintained that the levy was justified in view of the extended definition of the expression