The Times of India            30.10.2013

Kolhapur Municipal Corporation to freeze bank a/cs of 20 errant traders

KOLHAPUR: The Kolhapur Municipal Corporation (KMC) will freeze bank accounts of 20 traders in the city for not responding to notices sent to them for irregularities in filing annual returns and evading Local Body Tax (LBT).

The KMC had issued notices to 1,600 traders in August, asking them to pay LBT irregularly. It also casitgated them for failing to submit annual transaction details to the civic body. Chief LBT officer Ram Katkar said, "After we issued the notices, we had called the traders to ask them submit transaction details pending since last year and told them to put forth their grievances regarding the new system before a nine-member grievance redressal committee. However, around 20 traders did not respond to the demand despite being told repeatedly. We had issued the dates on which they had to submit the transaction details, but the traders failed to comply with the directives."

The KMC introduced the new tax system replacing the octroi system in 2012. According to the rules of the new tax system, traders have to register with the civic body and submit all the transaction details. The KMC charges taxes based on the assessment of the transaction details.

"The 20 traders were absent for the hearings. We are scrutinizing the documents procured for the details of the sales and other taxes paid by the sales and excise departments. We can find out the quantum of tax these traders have evaded after the assessment is completed. The bank accounts of these traders will be frozen within two to four days, after which they will not be able to conduct business transactions," added Katkar.

The state government had in May asked the traders to register their respective professional details within 90 days of the beginning of the financial year. It had also extended the monthly deadline for filing the tax, from the 10th of every month to the 20th.

Katkar said most city traders had given a positive response to the notices issued. "We have received a better response from traders as compared to last year as most of them paid the tax amount they had evaded after counselling by the committee. More than 1,500 traders registered with the KMC to pay LBT during a drive conducted last month."

The KMC generated Rs 37.90 crore as revenue from LBT, which is around 49% of the target for 2013-14, according to the midterm assessment. It aims to generate Rs 90 crore by the end of the financial year.