Mining Stocks Crash: Mining and metals companies have received a major blow from the Supreme Court in the tax case, after which the shares of companies like Tata Steel, NMDC, Vedanta, Hindustan Zinc and MOIL have seen a huge decline. The Supreme Court has said in its order that the states have the right to collect tax and royalty from mining companies and the states will be able to collect this tax from April 1, 2005. The constitutional bench of nine judges of the Supreme Court has given this decision, after which the stocks have seen a decline.
Sharp decline in mining-metals stocks
After the Supreme Court order, Hindustan Zinc’s stock fell by 6.2 percent to Rs 544. Tata Steel’s stock fell by 4.38 percent and came down to Rs 142.35. NMDC’s stock fell by 3.70 percent to Rs 216.30, MOIL’s stock fell by 2.98 percent to Rs 411 and Coal India’s stock fell by 4.36 percent to Rs 499. MMTC also fell by 2.67 percent and Hindustan Copper’s stock also saw a decline of nearly 5 percent and it fell below Rs 300 to Rs 295.
what order came
The Supreme Court has allowed the states to collect tax from mining companies from April 1, 2005. The nine-judge constitutional bench headed by Chief Justice DY Chandrachud has given the verdict. The court has ordered that the states will be able to collect this tax retrospectively i.e. from the old date or it will be applicable after July 25, 2024 when the Supreme Court gave this verdict in favor of the states. The court said that mining companies will have to pay the tax to the states in 12 years and no penalty will have to be paid on it. Mining companies will have to start paying tax to the states from April 1, 2026.
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