Center to return 1257 Crore to Telangana

Our readers are aware that Income Tax department had dug out 1274 Crore from Telangana’s RBI account as Income Tax arrears towards liquor sale. IT department alleged that Beverages Corporation is pending 900 Crores of service tax. 500 Crores service tax arrears belong to the United State from 2012 and the remaining 400 Crores is after the bifurcation.

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Telangana government had approached the center as well as the Hyderabad high court regarding this. They argued that the Income Tax department just can not debit money from a government agency.

Secretaries of Union Finance and Revenue ministry had taken a decision in favour of Telangana government and the money will be deposited to Telangana government’s account. Union Finance Minister Arun Jaitley is likely to sign the file in couple of days.