The New Indian Express 11.12.2010
‘We can levy cess on defaulting developers’
The Bruhat Bengaluru Mahanagara Palike (BBMP) issued a circular on June 9, 2010 that those constructing building on less than 20,000 square metre had to leave 10 per cent the land as open space.
As per the circular, land owners who did not leave open space had to pay 10 per cent of their land value as cess.
Confederation of Real Estate Developers’ Association India (Karnataka) had challenged the circular in the High Court. It contended that the BBMP had no legislative competence to issue such a circular. Also, the petition stated that the circular was contrary to the procedure of Town and Country Planning Act.
In its detailed objection filed in the court, the BBMP said the circular was in accordance with the Karnataka Town and Country Planning Act and Karnataka Municipal Corporations Act, 1976.
The Palike said as per the revised master plan 2015, developers had to leave 10 per cent of the land as open space to maintain park and five per cent of land for civic amenities. The Palike said the yardstick was applicable on non-residential buildings too.
The BBMP said private land owners were not leaving open space and thus it decided to collect cess from them. The Palike said the fund thus collected would be utilised to provide open space and parks. Justice Ashok B Hinchigeri heard the petition and adjourned the hearing to next week.
HC asks Wipro to pay tax
Karnataka High Court on Friday dismissed the writ petition of Wipro Technologies, which challenged the levy of four per cent value added tax of Rs 22 crore to export software.
While dismissing the petition, Justice Ashok B Hinchigeri suggested the petitioner to approach the appellate authority of commercial taxes. The court said the petitioner must deposit 50 per cent of the tax amount before the appellate authority while approaching it.
Wipro had developed software for different companies and exported the same but had failed to produce required details to commercial taxes department.
The department, on October 26, 2010, levied Rs 22 crore as Value-Added Tax on the company. Wipro had challenged the demand notice of the department. The department has stated that the sale of software amounts to sale of goods and it come under the purview of sales tax.
