Judgement that will alter both federal and mineral tax landscape

The nine-judge Constitution Bench of the Supreme Court of India, with a decisive 8:1 majority, has ruled on the contentious issue of mineral taxation, overturning previous judgments and clarifying the balance of power between the Union and the States.

The majority verdict declared that royalty on minerals is not a tax but a contractual consideration, and consequently States have the legislative power to tax mineral rights and mineral-bearing lands over and above the collection of royalty under Mines and Minerals (Development and Regulation) Act 1957 (MMDR Act).

To encapsulate on this, our Partner Gopal Krishna Mundhra authors an article on “Judgement that will alter both federal and mineral tax landscape” published by moneycontrol.com.

Read the article here