Hindustan Times 22.08.2013
Despite notification, civic bodies avoid service tax on parking
decided on the service tax issue on parking resulting in a minor Re 1
hike for residents to shell out every time they park their vehicles, the
North and East civic bodies are still sitting on the issue.
The notification issued by the Union service tax department to charge
12.36% service tax way back in March was to be effective from April 1
but even after around five months the civic bodies seem to be in no mood
to implement it.
A senior official in the East corporation told Hindustan Times no
action has been taken yet on the service tax issue. “Whatever South has
done, we will do that. The letter, which was issued by the Union service
tax department, didn’t come to us. We were informed about it by
Hindustan Times. We have asked the South corporation to send us their
preamble and we will do exactly that,” the official said.
The officials of the North civic body, on the other hand, are
claiming that they have already put the issue in the preamble of the
standing committee. “In the next meeting of the standing committee it
will come. The move will be in similar lines of the South corporation,”
he said.
On July 18, Hindustan Times had reported that the North Delhi
Municipal Corporation, which was keeping mum over the issue, will follow
its southern counterpart by getting the issue cleared by the standing
committee, the east civic body claimed it hasn’t received the
notification. Over a month has passed and still claims and promises seem
to be the only action taken.
“The service provider is duty bound to charge from the consumers.
That is what is written in the act and, thereby, car owners will be
charged accordingly for every time they park their cars,” a senior
official said.
The North Delhi Municipal Corporation has 116 parking sites, out of
which 62 were tendered a few months back. A survey has been conducted
for 100 other potential sites, out of which 25 have been sent for
traffic clearance. It also has four-multilevel parking sites.
The East Delhi Municipal Corporation, on the other hand, has 30 sites
and 45 more are in the process of being set up. Eight more are being
planned but there are no multilevel parking sites in its jurisdiction.