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Taxation

Rise in property tax collection

Tuesday, 06 April 2010 05:06 administrator
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The Hindu 06.04.2010

Rise in property tax collection

Staff Reporter

Puducherry Municipality netted Rs. 72 lakh in March

 

Rs. 25 lakh, Rs. 27 lakh collected in January and February respectively

Increase is owing to special tax collection drive

PUDUCHERRY: The Puducherry Municipality's property tax collection has substantially increased in the last three months, amounting to Rs. 72 lakh in March alone.

During the months of January and February, the municipality collected Rs. 25 lakh and Rs. 27 lakh respectively as property tax. The municipality has a total of 42,000 property tax assesses.

This was the outcome of a special tax collection drive launched by the municipality in January. The overall tax collection has gained momentum owing to the drive. The response was good, according to Municipal Commissioner D. Asokan.

“In fact, we have collected Rs. 20 lakh in February and Rs. 12.5 lakh in March towards professional tax during the special drive,” he said.

A total of Rs. six lakh has been collected as licence fee towards trade licences in the municipal limits.

A significant achievement of the municipality during the drive was collection of rent from market stalls – Rs. 21 lakh in March alone, the official said.

Entertainment tax of Rs. 22 lakh was collected during the special campaign, he added.

The municipality has started to receive pending payment from cable television operators.

Nevertheless, Mr. Asokan said the operators were seeking a remission of previous arrears from the government and were waiting for a reply. “Payment from the operators is pending. We received about Rs. two lakh during March,” he added.

Last Updated on Tuesday, 06 April 2010 05:16
 

PU to shell out Rs 48 cr as property tax

Monday, 05 April 2010 11:19 administrator
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Indian Express 05.05.2010

PU to shell out Rs 48 cr as property tax

RituSharma Tags : university, property tax Posted: Monday , Apr 05, 2010 at 0351 hrs

Chandigarh: As the Panjab University (PU) builds its infrastructure and liberally spends money, it is the Municipal Corporation which is singing to glory. With the completion of a number of buildings in 2009-2010, the university will have to shell out 66 per cent more on the property tax as compared to the previous years.

On the basis of the report submitted by the surveying wing of the Municipal Corporation, the MC re-assessed the buildings of Panjab University in Sectors 14 and 25 campuses in 2009 and enhanced the property tax bill from Rs 27.55 crore for 2008-2009 to Rs 47.87 crore last fiscal.

Subsequently, the university in its annual budget has enhanced the provision from Rs 30 lakh to Rs 50 lakh under the budget head — Services/Property Tax in respect of institutional buildings for the new financial year. The Vice-Chancellor has sanctioned Rs 17.87 crore on account of property tax to the Municipal Corporation, Chandigarh, out of the ‘Estate Fund Account’ for 2009-2010.

* The major construction and building projects completed in 2009-2010 included

* Second phase of Dr H S J Institute of Dental Sciences and Hospital, PU south campus: Rs 5.5 crore

* Seven-storey women hostel 7 on PU campus: Rs 5.75 crore

* Women hostel 1 in PU South campus at Sector 25: Rs 2.12 crore

* Academic Block-II, phase II of UIET, South campus, Sector 25: Rs 1.96 crore

* Extension of Botany Department: Rs 1.26 crore

* Renovation of faculty houses in PU campus Sector 14: Rs 14.35 lakh

* Additional parking at Student Centre: Rs 12.19 lakh

* While the major construction work expected to be completed this fiscal including

* UIAMS-cum-CIIPP cell at an estimated cost of Rs 10.32 crore

* Centre for Emerging area in Science and Technology at a cost of Rs 8.08 crore

* Three-storey boys hostel regional centre, Bajwara at Hoshiarpur at a cost of Rs 1.76 crore.

Last Updated on Monday, 05 April 2010 11:26
 

Civic body cannot levy Service Tax for giving permission: High Court

Monday, 05 April 2010 10:18 administrator
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Indian Express 05.05.2010

Civic body cannot levy Service Tax for giving permission: High Court

Express News Service Tags : corporation, levy service tax Posted: Monday , Apr 05, 2010 at 0307 hrs

Ahmedabad: AMC had collected Rs 6.17 lakh from an ad company for putting up hoardings

The Gujarat High Court has held that the Ahmedabad Municipal Corporation (AMC) cannot collect Service Tax from advertising companies for giving them written permission to put up hoardings at private places.

A Division Bench comprising Justices D A Mehta and H N Devani passed the judgement recently while acting on a petition by an Ahmedabad-based advertising agency.

According to the details of the case, the AMC had recovered Rs 6.17 lakh from the petitioner company as Service Tax for giving it written permission to erect advertising hoardings at various places in the city.

The civic body had demanded the amount through various communications in 2008 and 2009. The company — Selvel Media Services — later paid the amount ‘under protest’. Subsequently, it challenged the AMC move in the court and demanded refund of the amount with interest.

The petitioner contended that under the Finance Act, an individual is eligible for Service Tax if he is providing taxable service. However, he added, the AMC could not be termed to be a person who is providing service to any person so as to fall in the ambit of the said definition of ‘taxable service’.

Upholding the contention of the petitioner, the HC observed that the AMC’s act of granting written permission “cannot be treated to be a sale of space for advertisement, that is, providing space for display.” “Therefore, once it is found that the AMC is not rendering any taxable service to the petitioner, in the facts of the present case, it is not possible to uphold the action of the AMC in calling upon the petitioner to make payment of service tax,” the court observed.

The bench further said: “It may be that in a wider sense, the regulatory function of the AMC could be termed to be a public service for ensuring safety of public at large or providing a hazard-free environment within the local limits.”

But nowhere the Sales Tax Act entitles the AMC to collect tax on the fees collected for giving written permission, it said, adding, “AMC cannot act as an agent for the purpose of recovery of service tax.”

 
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