Tax notice on Modi rallies withdrawn

Tax notice on Modi rallies withdrawn

The Central Excise Department’s controversial decision to tax political rallies held by BJP Prime Ministerial nominee Narendra Modi seems to have backfired.

After the media broke the news on Tuesday, Directorate General of Central Excise Intelligence’s Ludhiana regional unit reportedly withdrew its February 12 notice.

The Directorate had earlier asked Chandigarh unit of the opposition party to intimate “within ten days of the receipt of this letter details of amounts collected and service tax paid, if any, with regard to various rallies organised after July 1, 2012, by the BJP/Narendra Modi” in the region falling under their jurisdiction.

The BJP launched a counter attack, saying that government had invented a new and curious method to tackle Modi. “Absurd as it sounds, they now propose to tax Modi’s rallies. Considering the mammoth crowds who gather to listen to Narendra Modi all over the country, this can be Finance Minister’s faint hope of augmenting his otherwise depleting revenue,” Senior BJP leader Arun Jaitley said. The Chandigarh unit of the BJP has not organised any rally of Narendra Modi as yet, Jaitley stated.

The one-page notice also stated that every service offered is taxable since July 2012, except those that fall in negative and mega exemption lists.

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