UP reverses F1 tax exemption

Just four days ahead of the third edition of India’s F1 race at Buddh International Circuit, the Uttar Pradesh government got the Supreme Court’s permission to withdraw its 2011 decision to grant entertainment tax exemption to Indian Grand Prix organizer Jaypee Sports International.
A bench headed by Justice R M Lodha told additional advocate general Ravi P Mehrotra that if the state wanted to withdraw its earlier decision, it was free to do so. However, it issued a notice to Jaypee Sports on UP’s application accusing it of not declaring income from the F1 race honestly.
In 2011, just before the first F1 race could take place, a writ petition was filed in the apex court challenging the state’s decision to exempt the event from entertainment tax.
On October 21, 2011, the court had directed Jaypee Sports International to “deposit in a no lien account the amount of entertainment tax without taking into consideration the exemption notification”.

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