The Hindu 22.05.2013
Railways agrees to pay property tax
Officials to finalise demand after joint inspection today
The Vijayawada Municipal Corporation has succeeded in
its endeavour to collect property tax (PT) from the Railways. The
Railways and the VMC, however, are yet to arrive at a consensus on the
rate of tax.
Municipal Commissioner G.S. Panda Das
and his team discussed various issues, including Nizam Gate outfall
drain, property tax, sanitation etc., with Divisional Railway Manager
Pradeep Kumar on Monday evening.
Another meeting is
slated on Wednesday to resolve the stalemate over the rate of property
tax. The authorities from both the organisations will go for a joint
inspection before finalising the demand, sources have said.
The
corporation maintained that the Railways had to pay 75 per cent of the
demand as per the Apex Court orders. The Railways, on the other hand,
asserted that it would pay only 33.3 per cent of the demand as it was
not dependent on the VMC for any of its services citing the court
orders.
The Apex Court, in a recent judgment, while
hearing a petition filed by Rajkot Municipal Corporation, observed that
the Railways had to pay 33 per cent of the property tax demand if it was
not dependent on local body for any services; and 75 per cent if it
depended on the local body. The Railways will have to pay 50 per cent of
the demand if it partially depends on the local body.
There
will be more than 200 property tax assessments related to the Railways.
The demand will be not less than Rs.1.20 crore per year. The
corporation, however, is yet to decide whether it has to press the
Railways to clear pending dues or not. It is awaiting pronouncement of a
policy from the State government as the issue has Statewide
repercussions.
