The Deccan Chronicle 03.12.2010
Tax axe on mobile tower buildingsDec. 2: After failing to get cellular companies to pay tax on their cell towers, the Greater Hyderabad Municipal Corporation has decided to instead tax the owners of the buildings on which the cell towers are installed.
Officials said that since building owners were collecting huge rentals on towers, it amounted to commercial activity. The owners have to pay tax on towers in addition to property tax they are paying on the building.
“For any commercial activity, the management or owner has to obtain a trade licence from GHMC. Besides, the property tax is more on buildings with commercial activity. So it has been decided to collect additional tax on towers from owners of the buildings,” GHMC additional commissioner, finance, Mr Hari Krishna said.
The civic body has fixed the tax rate between Rs 25 and Rs 60 per square feet of the area covered by a cell tower. The rate will vary depending on the locality. The corporation hopes to raise Rs 2 crore per annum by taxing building owners.
Meanwhile, several cellular firms have approached the High Court against GHMC’s diktat of a one-time payment of ` 1 lakh for installation of cell towers. The companies are questioning the rationale and criteria adopted by the civic body in fixing the amount.
GHMC chief city planner, Mr G.V. Raghu said there are nearly 3,000 towers installed by various cellular companies in the city.
