The Hindu 22.05.2013
Railways agrees to pay property tax
Officials to finalise demand after joint inspection today
The Vijayawada Municipal Corporation has succeeded in its endeavour to collect property tax (PT) from the Railways. The Railways and the VMC, however, are yet to arrive at a consensus on the rate of tax.
Municipal Commissioner G.S. Panda Das and his team discussed various issues, including Nizam Gate outfall drain, property tax, sanitation etc., with Divisional Railway Manager Pradeep Kumar on Monday evening.
Another meeting is slated on Wednesday to resolve the stalemate over the rate of property tax. The authorities from both the organisations will go for a joint inspection before finalising the demand, sources have said.
The corporation maintained that the Railways had to pay 75 per cent of the demand as per the Apex Court orders. The Railways, on the other hand, asserted that it would pay only 33.3 per cent of the demand as it was not dependent on the VMC for any of its services citing the court orders.
The Apex Court, in a recent judgment, while hearing a petition filed by Rajkot Municipal Corporation, observed that the Railways had to pay 33 per cent of the property tax demand if it was not dependent on local body for any services; and 75 per cent if it depended on the local body. The Railways will have to pay 50 per cent of the demand if it partially depends on the local body.
There will be more than 200 property tax assessments related to the Railways. The demand will be not less than Rs.1.20 crore per year. The corporation, however, is yet to decide whether it has to press the Railways to clear pending dues or not. It is awaiting pronouncement of a policy from the State government as the issue has Statewide repercussions.
