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DDA told to pay Rs 746 cr property tax

South corporation sent notice to land agency,wants tax for 319 properties,24 sports complexes.

Written by Pragya Kaushika | New Delhi |
October 19, 2012 3:05:44 am

South corporation sent notice to land agency,wants tax for 319 properties,24 sports complexes.

The South Municipal Corporation has demanded Rs 746 crore from the Delhi Development Authority (DDA) as property tax.

The corporation said the DDA is yet to pay tax for its 319 properties and 24 sports complexes spread across the three corporations.

The corporation in its letter stated that the DDA is required to pay tax for its properties,in accordance with the Delhi Municipal Corporation Act.

“The DDA had earlier informed erstwhile MCD that it has two categories of properties. First category includes 319 properties,comprising buildings and vacant spaces,and the second category comprises 24 sports complexes,” the notice stated.

According to the demand note,the DDA has to pay Rs 746.05 crore for its 319 properties and 24 sports complexes. This amount was reached after calculating tax plus interest on these properties,a senior corporation official said.

Regarding the 24 sports complexes,however,the letter said some legal issues were raised by the DDA and,on the L-G’s direction,a joint reference was made to the Additional Solicitor General. “Based on the ASG’s opinion,it was decided that the DDA will pay property tax for these sports complexes as well,” the letter said.

A senior South corporation official said the dues should be cleared in a month’s time. “ASG Vivek Tankha had stated that as the DDA is earning revenue from its sports complexes,it should pay property tax for these. We believe that DDA properties do not come under Union of India properties. Even if they do,they need to pay service tax. According to Section 119 of DMC Act,any Union property owned by a government entity or a statuary body having a personality of its own will not be considered Union property,” the official said.

Responding to the notice,the chief accounts officer,DDA,said,“Legal opinion rendered by Additional Solicitor General referred to you (SDMC) in the above-mentioned letter is under consideration and will be replied to shortly.”

The DDA has also asked for details of the property tax assessment made by erstwhile MCD regarding the sports complexes.

There are,however,some issues that needs to be sorted out,the officials said.

Property tax returns,based on self-assessment,may be filed in the case of 319 properties for the years from 2004 to 2012.

In case the DDA fails to file the self-assessment returns in time,the corporation will be forced to have a suo motu assessment done,as stated in Section 123-D of the DMC Act.

Also,after trifurcation of the erstwhile MCD,it is requested that self-assessment of property tax be filed separately with the respective corporations based on under whose jurisdiction the properties fall.

North corporation to send notice to Railways for defaulting on tax

North Municipal Corporation too has decided to recover tax from government or private properties that have not been paying property tax. Rajesh Bhatia,chairman of high-empowered tax committee said North corporation will send notices to discoms,Railways and certain individuals to recover property tax dues from them. Bhatia said these agencies were among the highest tax defaulters under its jurisdiction. “The Railways has never paid tax on its properties falling under our jurisdiction. The same is the case with discoms. We haven’t received any tax for the land on which electricity transformers have been set up.We will give auction notices to the seven highest tax defaulters,’’ Bhatia said.

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