The Indian Express 31.08.2012
Pay tax for hoardings on towers, civic land: South corporation to agencies
South Municipal Corporation has written to various agencies,
including Northern Railway, Delhi Metro Rail Corporation (DMRC), Delhi
Integrated Multi-Modal Transit System Ltd (DIMTS), UP Irrigation
department, Delhi Tourism and Transportation Development Corporation,
Delhi International Airport Ltd (DIAL) and various oil companies to pay
tax on advertisement hoardings.
B N Singh, Assessor and Collector, South Municipal Corporation,
said: “According to the law, the advertisements on hoardings and towers,
erected on the ground or on top of buildings, have to pay property tax.
The corporation has asked the agencies to send in their report by
September 15. After this the corporation will inspect the sites and
take action. This tax is in addition to the hoarding tax paid to the
corporation.”
“This is the first time that any corporation would be demanding
property tax for advertisement hoardings which is permitted under Delhi
Municipal Corporation Act, 1957.
Major agencies like DIMTS, DIAL , Railways and Metro along with
the Indian Oil Company, Bharat Petroleum and Hindustan Petroleum
Corporation Limited, Indraprasth Gas Limited and various ad agencies
will have to pay dues,” said Singh.The property tax of such hoardings will be ten times the property tax of the area, he said.
“Hoardings — as specified under the Municipal Act — means large
boards used to display ads, erected on poles, buildings or ground. It
will be computed as covered area which means the square of extremities
of the poles on which hoardings are erected plus the area of the
building,” reads the notice sent to the Northern Railway.
“It is to be noted that under the provisions of DMC Act property tax
dues on these ads are recoverable together with penalty and interest,
besides penal action,” the notice further said.
The letter sent to these agencies also said the agencies have
been displaying and allowing the display of advertisement on land
belonging to the corporations, details of which are being collected.
