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Taxation

Corpn nets record Rs 25 cr tax in two months

Tuesday, 08 June 2010 09:38 administrator
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The Times of India      08.06.2010

Corpn nets record Rs 25 cr tax in two months

Julie Mariappan, TNN, Jun 8, 2010, 12.39am IST

CHENNAI: Collection of profession tax has fetched the revenue department of Chennai Corporation a whopping Rs 25 crore in less than two months of the current fiscal year -- which officials say is a record of sorts.

Any company that transacts business or any person engaged actively or otherwise in any profession, trade and employment within the corporation limits has to pay half-yearly profession tax. According to Section 138 of the Chennai City Municipal Corporation Act, 1919, every person who is liable to pay profession tax should pay it before September 30 and March 31 of every year.

"The innovative measures taken up by the corporation recently have helped attain the high target," a senior official said. For instance, the postal requisition forms introduced in March last have reached more than 4.5 lakh households. The corporation has a tie-up with India Posts Chennai Circle to send direct posts. The unaddressed postal cover with assessment call notice and form II for payment of tax have been sent to individuals through Direct Post.

Direct Post is the brainchild of the postal department, launched on the sidelines of increasing commercial activity in the country. It caters to business organisations to advertise their products and services directly to the consumers. "We are yet to arrive at the number of new assessees through Direct Post. But we are sure that more than 30% new assessees would have come through this postal mode," an officials said.

The revenue department could net only Rs 17 crore during the corresponding period in the previous fiscal. Profession tax assessment is calculated on the half-yearly gross income for the following categories -- salaried (Union and state government) individuals, private establishments and companies. Records reveal that 17,825 private establishments and 53,538 individuals are profession tax payees in Chennai.

The profession tax collection stood at 54.26 crore during 2005-06, before swelling to Rs 63.69 crore in 2006-07 and Rs 73.83 crore in 2007-08. The department surpassed the targetted Rs 85 crore in last fiscal, following hike in tax rates that ranged between 25% and 35%. "Rs 127 crore was realised and this helped the civic body implement various welfare schemes," the official added.

The new tax rates introduced with retrospective effect from October 2008 has not had any new income slabs. Those whose average half-yearly income is between Rs 21,000 and Rs 30,000 will have to shell out Rs 100 and those in the bracket of Rs 30,001 and Rs 45,000 (Rs 235), Rs 45,001 and Rs 60,000 (Rs 510), Rs 60,001 and Rs 75,000 (Rs760) and Rs 75,001 and above (Rs 1,095).


 

Remove confusion over Vacant Land Tax issue, say councillors

Tuesday, 25 May 2010 05:19 administrator
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The Hindu      25.05.2010

Remove confusion over Vacant Land Tax issue, say councillors

Special Correspondent

COIMBATORE: The Coimbatore Corporation is in a fix over the Vacant Land Tax (VLT) issue as councillors insist that a uniform rate must be levied. They allege that confusion has been created by the civic body over a circular issued by the State Government in October last year, suggesting square feet rate for levying the tax.

The circular had said that the new rates could take effect on October 1, 2009, but did not state what rates were to be levied on lands purchased/registered prior to that day. The Corporation's lack of clarity on this aspect now caused confusion, according to the councillors.

The Corporation Council saw a long drawn-out discussion on this issue at its recent meeting. Councillors of various parties wanted the Corporation to take up this issue with the Government and get the ambiguities removed.

Communist Party of India (Marxist) member and Corporation North Zone Chairman C. Padmanabhan said on Monday: “We have asked for a uniform rate for 13-and-half half-yearly instalments of the tax to be levied.”

Prior to the issuing of the circular, the Corporation collected one per cent of the value of the land mentioned in the sale deed. The tax was applicable on vacant lands meant for the construction of houses, commercial establishments or industrial units. Lands meant for agriculture were exempted from the tax. The tax had fetched Rs. 10 crore a year for the Corporation, the councillor said.

Now, the circular said 13-and-a-half instalments of the tax, calculated on a half-yearly basis, could be collected with effect from October 1, 2009 based on the square feet rates. “We want no confusion over this and the Corporation has sought 10 days to sort it out,” he said.

Communist Party of India member K. Purushothaman said: “The issue has been needlessly confused. The circular says that 13-and-a-half instalments of the tax have to be collected with effect from October 1, 2009. When this is the case, why should we ask the Government what system is to be applied on lands registered in 2005?”

Mr. Purushothaman said if anyone who had bought a site for construction in 2004 or 2005 approached the civic body for tax assessment now, it should be straightway done for 13-and-a-half half-yearly instalments on the square feet rate basis fixed by the State Government. The civic body should not confuse itself and others by asking what rate should be applied for the months or years prior to October 1, 2009.

All India Anna Dravida Munnetra Kazhagam councillor P. Rajkumar also said that only a uniform rate would remove the confusion over the tax issue.

All applications for VLT assessment were not being cleared by the Corporation because of this ambiguity, he said. The public also were confused over the amount they had to pay.

In some cases, Property Tax assessment was done by the Corporation only if the building owner had paid the VLT for the house site. Now, the confusion of the tax rates would only hold up applications for the Property Tax assessment also, Mr. Rajkumar explained.

These problems cropped up because Government Orders on such important matters were not discussed in the Council. “We come to know of the problems only when people complain of these to us,” he said.

Referring to the walkout by the CPI (M) and Communist Party of India members at the Council meeting, Mr. Padmanabhan said it was against the Corporation's move to privatise the maintenance of new fish market and bus stand.

“We are against handing over a public facility entirely to one private party in the name of maintenance,” he said.

In the case of the fish market, the parties feared that the small and marginal traders who operated from the old market for years would not be allocated shops as the private operator would monopolise the contract option and offer shops to those who could pay hefty sums.

If sanitation was the issue, the Corporation should engage an operator, he said.

Last Updated on Tuesday, 25 May 2010 05:20
 

Property tax in e-tangle

Monday, 24 May 2010 06:18 administrator
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Deccan Chronicle     24.05.2010

Property tax in e-tangle

May 24th, 2010
DC Correspondent

Tax collectors are demanding old bills as they are into computerization of tax collection. Irked taxpayers say the corporation should use its records to create a database. Sources say the corporation wants the old bills because its records are missing.

Mr S. Raja Goundan, owner of a garment showroom in Pursawalkkam, said, “My son approached the corporation zonal office in Pulianthope last week to pay the property tax, but he was asked to bring the previous bills provide details of payment mode. Since the bills were missing, he approached the revenue officials at the Ripon Building to sort out the issue.”

Mr J. Dominic, a resident of Chengalvarayan Street in Choolai, said, “The automation of property taxes is welcome, but the corporation should not ask taxpayers to bring previous bills.”

A revenue official at Ripon Building said the problem would end in two months. Earlier, manual receipts were provided, but now tax collectors get a mobile handled machine to collect tax and issue receipt.

 
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