“Tata Steel may face massive Rs.17,000 Crore Tax Bill from Odisha Govt.”
In December 2005, Tata Steel had filed a writ petition to the High Court of Odisha to rule out the impose of taxes on minerals. However, the High Court was in the favor of the Company stating that ‘the Odisha Government lacked the authority to impose taxes on minerals.’ This was introduced when the Odisha Government introduced “Orissa Rural Infrastructure and Socio-Economic Development Act, 2004 (ORISED Act)” to levy tax on mineral bearing land.
In the eastern part of the nation, Tata Steel operates 10 mines which includes iron ore mines, chromite mines and manganese mines. The Company’s operations are highly depended on this minerals as they play a crucial role in supplying raw materials.
The Supreme Court bench of nine judges stated that 'the states have the power to impose tax and levy cess on land in which the minerals are extracted from.
Therefore, Tata Steel might need to pay more than Rs.17,000 crore as minerals tax dues to the state of Odisha, if the Supreme Court rules that states can retrospectively impose taxes on mineral extraction.
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