ITDC wins Indian duty free court ruling

INDIA. The India Tourism Development Corp (ITDC) has won a vital Supreme Court ruling that could have forced retailers to pay tax on duty free sales at Indian airports. The news was reported by local media, including the Deccan Herald.

A case was taken by the Karnataka government, which wanted to levy ITDC sales at its Hotel Ashoka at Bangalore Airport, the newspaper reported.

The Supreme Court held that goods sold at duty free shops at international airports could not be taxed as they do not take place within the country’s tax jurisdiction.

The Deccan Herald quoted the judges as saying: “It is very clear that no tax on the sale or purchase of goods can be imposed by any state when the transaction of sale or purchase takes place in the course of import or export of goods out of the territory of India. Thus, if any transaction of sale or purchase takes place when the goods are being imported in India or are being exported from India, no state can impose any tax thereon.”

How the Deccan Herald reported the news of the court ruling


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