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Taxation

Adani Gas questions Ahmedabad Municipal Corporation tax on pipeline

Saturday, 25 August 2012 09:02 administrator
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The Times of India   25.8.2012

Adani Gas questions Ahmedabad Municipal Corporation tax on pipeline

AHMEDABAD: The Gujarat high court on Friday issued a notice to the Ahmedabad Municipal Corporation and the state's advocate general after Adani Gas Ltd questioned the levy of property tax on its pipelines meant for gas distribution in the city.

According to case details, the civic body raised a bill of Rs 5.53 crore towards property tax on its gas pipelines laid underground across the city. The tax has been calculated from 2005.

The company paid the amount in March this year, but questioned the validity of the levy. When things could not be solved, the company moved the high court challenging the legality of such taxation. Before the court, the company has contended that the pipelines have been laid underground and serve the public. On a property that is not in the form of a building or construction above the ground or on land, property tax cannot be levied, the company's counsel submitted.

Besides, the company also questioned the provisions under which the AMC levied property tax - section 141(B) of the Bombay Provincial Municipal Corporation (BPMC) Act. It was submitted that the provision speaks of levying tax on buildings in the corporation area, but is silent on the limit on land tax. And this is ultra vires to Article 243 of the Constitution.

After the hearing, a bench of Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala sought an explanation in this regard from AMC as well as from the state's highest legal officer. Further hearing has been scheduled three weeks later.

Last Updated on Saturday, 25 August 2012 09:03
 

Collect tax in time or pay up, CMC officers told

Friday, 24 August 2012 00:00 administrator
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Deccan Herald     24.08.2012

Collect tax in time or pay up, CMC officers told

Kolar:

 A G Kodgi, chairperson of Third Finance Commission, has warned that Municipal and Panchayat officers who neglected revenue collection should make up for the loss themselves.

“The collection of revenue and providing amenities are symbiotic as one cannot collect revenue without providing amenities nor give facilities for free. The jobs are the responsibility of the local administrative officers, who are expected to do so with diligence,”  said Kodgi, at a meeting of the task force at the Kolar Zilla Panchayat auditorium on Thursday.

Staff and space

Kodgi and Commission member Thimmegowda rejected the explanation offered by CMC president Nazia and municipal commissioner Mahendra Kumar that the municipality lacked enough staff and space.

“The CMC should have managed to collect a minimum of Rs three crore, forgoing building rent of Rs 90 lakh,” said Thimmegowda, but the president and commissioner failed to explain why the CMC had failed to do so.

Deputy Commissioner D S Vishwanath added that the CMC revenue collection had reduced from 19 per cent to 15 per cent.

“The revenue collection target has been increasing every year, but the actual collection of the CMC is decreasing, since the members and officers have grossly neglected it,” said Thimmegowda.

‘Drought no hindrance’

CMC vice-president Khaleel Ahmed cited drought as the reason for non-collection of revenue.Dissatisfied, Kodgi and Thimmegowda said that the drought had affected other taluks in the district as well. “But the municipalities there have not failed to miserably in collection. The reason cannot be logical,” they said and added that commercial activities in the urban areas had not shrunk because of the drought.

“The local organisations have been wasting water, adding to the problems of the citizens,” the Commission officers said.

‘Issue notice’

CMC officers were told to list out names of citizens who have failed to pay taxes and send them notices. “If they fail to respond, try getting the money directly from their bank accounts,” added Thimmegowda.

Dr Mahendra S Kanthi, a member of the task force, and Rajendra Cholan, CEO of the Zilla Panchayat were present.

Last Updated on Saturday, 25 August 2012 05:49
 

Property tax: Municipal Corporation of Gurgaon all set to respond to SC notice

Saturday, 18 August 2012 07:11 administrator
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The Times of India    18.08.2012

Property tax: Municipal Corporation of Gurgaon all set to respond to SC notice

GURGAON: The municipal corporation has prepared the reply it would file in the Supreme Court next week regarding property tax. The SC had asked the MCG to clarify its stand on this issue after a residents group challenged its decision to impose property tax without providing basic services like water and an efficient sewage system. During a hearing on August 13, the SC had given the MCG 10 days time to file its report and the next hearing is likely to be on August 24.

While the MCG officials are not willing to say what exactly they will tell the court, sources indicate that the municipal commissioner has decided that the corporation will continue to issue house tax assessment notice to even those residents living in private builder area, even though MCG is currently not providing any services to them.

"We are ready with our report and we have decided that we will collect tax from colonizer area as well since it is in accordance with the state government notification. We are going to proceed with the present policy that empowers us to levy property tax all on the property owners in the municipal jurisdiction. And moreover we are going to use the fund that we collect on welfare and development projects for the public," said a senior official.

He added, "Some people seem to be misguiding the general public saying that we have decided to withdraw the assessment notice that we have issued, but we want to clarify that this is not true at all, and this is what we are going to tell the Supreme Court as well. And the other point we are planning to emphasize is that we are not against the idea of providing service to those living in private builder area, but we can do so only if those areas are transferred to us. Moreover we are providing them services like firefighting as and when they require."
Last Updated on Saturday, 18 August 2012 07:13
 
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