The Hindu 04.10.2010
Non-payment of tax: cases against 4 BMC officials, 2 firms
Staff Reporter
| Mall, hotel charged with paying less tax in connivance with the officials |
Prima facie found about discrepancies in assessment and collection of holding tax
Against two lakh properties in BMC limits, holding tax is said to be collected only for 73,000 units
BHUBANESWAR: Vigilance wing of State police registered cases against four officials of Bhubaneswar Municipal Corporation and managements of two commercial establishments for allegedly evading paying “actual” holding tax amount.
Assessment by State vigilance department showed two commercial establishments – one mall and a hotel – were paying tax amount lower than they were supposed to pay to BMC.
Upon finding prima facie about discrepancies in assessment and collection of holding tax, vigilance registered cases against four BMC officials and booked management of two establishments.
Vigilance department sources said the hotel in Chandrasekharpur area was paying Rs. 2.77 lakhs towards holding tax. But test assessment showed the hotel should have been asked to pay about Rs. 5.74 lakhs based on the space they use.
It was alleged that hotel management suppressed the exact area of commercial space in connivance with tax officials.
Similarly, a mall which has thousands of square feet under its use, was paying for only 6700 sq ft which accounted Rs. 43,540. But the mall should have paid Rs. 8.75 lakhs per annum.
Superintendent of Police Debadutta Patnaik confirmed that two cases had been registered against tax collectors and authorities of commercial establishments.
He said the vigilance department was going to bring other commercial establishments and educational establishments under the purview of investigation.
The BMC has been accused of not collecting holding tax to the potential.
Against about two lakh properties in the BMC limits, holding tax is based on 73,000 units. It is also alleged that BMC authorities have adopted soft approach to many educational institutes that had refused to pay holding tax.
Instead of taking these educational institutes to task, the BMC went on giving them time, it was alleged.
