Sikkim Court upholds lottery distribution tax rules

The Sikkim High Court has upheld the rules brought through the Finance Act 2016 which stipulate that persons engaged in the marketing, organizing, selling or facilitation of lottery liable to service tax, local media reports.

A division bench headed by Chief Justice Satish K Agnihotri observed that the Union Parliament has the power to impose and levy a service tax on other related activities.

Lottery distributors had previously approached the high court disputing the amendments made by the Finance Act 2016.