The Hindu 11.11.2010
Municipal Commissioner puts PSUs on notice
Staff Reporter
| Organisations told to pay service tax by December 31 |
VISAKHAPATNAM: All the public sector units and Central government organisations must pay the service tax due to the Municipal Corporation by December 31, Municipal Commissioner V.N. Vishnu told representatives of the organisations at a meeting here on Wednesday.
The service tax would be levied on the basis of the orders issued by the Municipal Administration and Urban Development Department. These orders were issued following the directive of the Supreme Court on payment of service tax and the Union Urban Development Ministry's instructions. The tax would be levied at 75 per cent, 50 per cent and 33.33 per cent of the property tax in the respective zones and sub-zones depending upon the proportion of services provided to the organisations, Mr. Vishnu said.
Notices would be issued to them and any objections, if filed, would be disposed of after physical verification, the Commissioner said.
Some organisations, objecting to allow taking measurements (of premises), should co-operate for jointly taking up the exercise with their representative and the Municipal Revenue wing officials. He directed Additional Commissioner (Finance) P. Purnachandra Rao to prepare GIS-based maps for the PSU and Central government premises by December 15.
Representatives of Posts, CBI, AIR, Naval, Defence, Railways, Telecom, Airport and Shipyard participated.
Demand notices
Demand notices have already been served for the arrears payable. Sources said the arrears only for residential premises of the organisations for the past few years would be around Rs.5 crores to Rs.6 crores. Some organisations like the Railways and the Navy never paid the service tax, according to officials.
Officials said the new orders have brought all the organisations and their office and production premises into the ambit of the service tax.
At Wednesday's meeting it was made clear that all the PSUs and Central government organisations must pay the 33.33 per cent, the lowest slab of the tax.
The demand to be raised in proportion to the services at higher slabs could be sorted out across the table.
The MA&UD's order states that in the event of a disagreement, the Municipal Commissioner should submit proposals to the government for constituting a three-member mediation committee.
