GSTB to avoid tax trauma by giving students desks

The state textbook board, grappling with excess funds that are in I-T’s crosshairs, plans to give NID-designed desks to students of govt schools
By Yogesh Avasthi
Posted On Wednesday, January 21, 2009 at 02:22:49 AM (Ahmedabad Mirror : http://www.ahmedabadmirror.com/index.aspx?Page=article&sectname=News%20-%20City&sectid=3&contentid=2009012120090121022249187a230256c)
GSTB Chairman Madhu Patel with the deskAround 4 lakh students of government-run schools will get writing desks designed by NID, thanks to the Income Tax (I-T) department, which has slapped a notice on the Gujarat State School Textbook Board (GSTB).The GSTB, which has its office in Gandhinagar, apparently has huge sums of money that have been lying unused for the past few years. A source says the GSTB has amassed the money by printing textbooks at a cost which is lower than the one mentioned in the budget approved by the state government.

The I-T department had served a notice on the GSTB, asking it to pay tax on the amassed funds. This spurred the GSTB to put the money to good use, i.e. providing writing desks to students of government schools. “The board prepares a budget for printing textbooks, with pre-determined rates, every year. The budget is forwarded to the state government, which, after approving it, provides funds for the same,” the source said. “The board ends up saving lakhs of rupees by printing textbooks at a rate that is slightly lower than the quoted amount.”

The source said that following the tax notice, the GSTB filed an appeal in I-T tribunal, and sought relief. The I-T tribunal, the source said, turned down the appeal, and suggested the board to spend the amassed funds on development purposes in a phased manner.“We have decided to spend Rs 15 crore before March 31 for educational purposes,” the chairman of GSTB, Madhu Patel, said. “We will provide specially-designed writing desks to primary students of government-run schools. Pankaj Patel, who is a visiting faculty member of NID, has a model of the desk for us.” Patel said that eco-friendly materials would be used to make the desks.

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