Citing service tax,South corpn to hike parking rate by Re 1

Despite Delhi BJP chief Vijay Goel’s order against increasing taxes so that the financial burden on the residents of the city does not increase,South corporation on Tuesday decided to increase parking rates

Written by Express News Service | New Delhi | Published: July 17, 2013 2:11 am

Despite Delhi BJP chief Vijay Goel’s order against increasing taxes so that the financial burden on the residents of the city does not increase,South corporation on Tuesday decided to increase parking rates by Re 1.

The decision was taken during a Standing Committee meeting,where the commissioner’s report on new service charge notification by the Ministry of Finance was quoted.

According to the notification,service charge will be applicable to every contract.

They cited the example of Delhi Metro,where the monthly licence fee was inclusive of all charges and taxes and contractors do not have to pay an additional amount.

“Whereas in case of corporation,the policy is such that

the contractor has to pay all taxes. Now,the tenders for

the site were invited before the notification came and selected bidders refused to

pay taxes. So,we have suggested that it should be collected

from those who park their vehicles. Since,it is not an increase in parking rates,service charge will be mentioned on parking tickets separately,” South corporation commissioner Manish Gupta said.

Parking two-wheelers will cost Rs 8,up from Rs 7 and for four-wheelers,the rate will be Rs 11,up from Rs 10.

Distancing themselves from the decision,Rajesh Gehlot,Standing Committee Chairman,and Leader of House Subhash Arya said they have left it to the discretion of commissioner to impose this service charge.

The commissioner in his letter has already suggested levying this charge on those who park their vehicles.

“We understand that the corporation will incur heavy losses if it pays this tax and the contractor will not pay it. Users have to pay it,but we have referred the matter to commissioner for decision,” Gehlot said.

Meanwhile,North corporation demanded a three per cent reservation for children of municipal corporation employees in the upcoming civic body-run medical college.

The new college that has recently got approval from Medical Council of India,will soon begin its admission process.

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