Operators take it to court
The tax man in India is going after 10 casinos in Goa for failing to pay taxes. The country’s Directorate of Revenue Intelligence has demanded that the casino pay license fees for the years 2014 through 2016 plus a 15 percent tax on the fees.
Defiant casino owners have taken the case to court, arguing that the license fees alone permit them to operate, and the tacked-on tax is illegal.
An attorney who filed a petition with the Bombay High Court said that assessing a tax on statutory license fees is “absurd. It’s like demanding tax on passport fees paid to the government. There needs to be an element of service and quid pro quo for an activity to be taxable.”
Tax experts agree with the casinos. M S Mani of Deloitte India said, “Many casinos have paid service tax on reverse charge basis and hence should not be expected to pay any other indirect tax.”
Goa hosts six land-based, foreigners-only casinos, all based in hotels. The remainder are on cruise boats on the Mandovi River.
