17 October 2019
Bhubaneswar: Rajya Sabha Member from Odisha Amar Patnaik has written a letter to Finance Minister Nirmala Sitharaman requesting exemption of all district mineral foundations of Odisha from income tax and GST.
In the letter Patnaik stated that the DMF trust work for the interest and benefit of persons and areas affected by mining-related operations. These trusts have been set up for every district concerned as an entity under the State Government for no profit and for playing an important role for common good of the community and for using the fund of the Trust for the interest and benefit of persons and areas affected by mining-related operations.
"The DMFs in Odisha and probably all over India could not file the applications int he initial few years due to lack of understanding of the consequences as this was a new mechanism is introduced in the districts and State. However, the IT authorities are claiming tax on the surplus amounts accrued in the Trusts/DMFs," said Patnaik.
He added, under the GST law, the activity of Government and local bodies and some trusts are exempt from GST. However, there is no mention of Government formed/controlled trusts in the same. “There are certain services/activities which are exempt from tax like roads, public transport etc. While many other public services are also taxed. Hence, there is confusion,” the RS Member added.