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GVMC online tax collection likely by June-end

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The Hindu              15.05.2013

GVMC online tax collection likely by June-end

G.V.Prasada Sarma

More than a year passed since online payment of civic taxes has been promised by the GVMC. Throughout 2012-13, the proposal has not materialised denying a much-needed easy payment options to tax-payers pressed for time.

Though some of the banks have made arrangements for accepting payments they fell through on the condition that banks should set up servers.

With the peak March-end situation over, the GVMC now seems to be using the time to finalise the logistics paving the way to enter into an agreement with banks. Sources say the online payment system is likely to be in place by June-end, the first quarter by which payment of taxes begins.

For online payment through banks, no transaction fee will be collected. However, the retention period by banks has to be decided. Sources said quotations would be sought from the banks for it and those quoting the lowest retention period for remitting to the GVMC would be allowed to collect the taxes. However, setting up of servers is considered a prerequisite for net banking. Last year, five private banks collected GVMC’s taxes without charging from payees but set up their servers.

The GVMC now wants to improve access to public by roping in public sector banks as well.

Quotations of banks are being sought to finalise the cost for transaction, sources said. One of the private banks suggested a slab system of sorts. Collection on percentage basis will however be a burden to payees.

The other option is individual online payment. A good percentage of the tax-payees, particularly those staying away from the city and employees, of the 3.7 lakh assesses are expected to use debit/credit cards for online payment.