Pvt schools may have to cough up licence fee: South corpn

New trade policy proposes revised fee for various businesses.

Written by Express News Service | New Delhi | Published: October 24, 2012 1:06:33 am

New trade policy proposes revised fee for various businesses.

South Delhi Municipal Corporation (SDMC) has proposed that private schools and kindergartens should be treated as trade and licence fee made mandatory for them.

According to the revised trade licence policy of SDMC,private institutes and coaching centres —which make money and don’t pay fees to government — will have to seek licence from the corporation.

According to the new policy,public schools,private colleges,technical institutes,vocational institutes,study centres of universities of other states,skill development courses,music,aerobics,dancing and fine arts training centres,grooming academies,computer classes,coaching centres,correspondence tutorials and kindergarten have to pay a licence fee to the corporation.

The licence fee of these institutes will range from Rs 2,000 to Rs 15,000. SDMC officials said the inclusion of private schools in category of trade is valid. “Private schools charge a heavy amount as fee from children and we do not consider them as non-profit organisations. Private schools have to pay licence fee. Schools up to Class X have to pay an annual licence fee of Rs 10,000 and those up to Class XII will have to pay Rs 15,000,” Rajesh Gehlot,chairman of the Standing Committee,SDMC,said.

Other trades,too,have been brought under the new trade policy and will require a licence from the corporation. These are: Multi-brand hyper marts; back-end data processing for banks,telecom,insurance or other sectors; BPOs; call centres; cable network; computer-aided design; cyber cafe; engineering project management services; telecom company offices; recharge coupon stores; DTH recharge coupon stores; STD- PCOs; ATM machines; bank branches or their offices; car finance; money transfer agencies; multi-level marketing companies; and share trading terminals — individual operated and limited to one machine.

The licence fee in the financial sector ranges from Rs 3,000 to Rs 15,000,an SDMC official said.

In the leisure and entertainment sector,computer gaming,business centres in hotels or individual,DJs and light sound band will have to seek licence to operate from now on. For builders and civil contractors the licence fee will be Rs 10,000. Administrative offices,private and government PSU offices will have to pay a licence fee of Rs 6,000.

In the service industry,architects,advertisement agencies,book-binding,courier services,film distributors,horoscope services,housekeeping services,printing press,movers and packers,watch repair,wedding planners,HR consultancies and event management companies too have too seek licence from the corporation.

SDMC to hold camps to distribute licences

South Delhi Municipal Corporation (SDMC) has proposed door-to-door distribution of provisional licences and bringing about uniformity in trade licences.

An SDMC official said as part of simplifying the trade licence policy, teams will be formed to hold door-to-door special registration camps. Photographs and notorisation will be done on the spot for easy compliance,the official said.

The licence fee paid to the team sent will be remitted directly to the corporation. The team will comprise private players to provide support to corporation officials.

In the new policy,the corporation proposes to do away with building plan sanctions,occupancy certificate,key plans,landlord NOC,property tax payment slips,no objection certificates for fire safety and pollution,and structural safety certificate.

“In the case of special areas such as Chandni Chowk and those falling under the Special Area Act,like unauthorised colonies,all these documents would not be required. Those with no building plan approval will get limited certificate – a special certificate — to operate shops in unauthorised colonies. The processing fee for obtaining the licence will be charged from traders and it will be decided after approval of policy,” a senior official said.

Rajesh Gehlot,chairman of the Standing Committee,SDMC,said: “Providing provisional licence on the spot will ensure transparency in the process. The licence will be valid for 90 days and if all the documents are in order,and the fee is remitted to the corporation,the licence will be sent to the trader. Penalty will be levied on those who refuse to pay the fee. The first-time penalty will be Rs 1,000,Which will accrue at the rate of Rs 100 a day after that,” Gehlot said.

An official said the corporation earned a revenue of Rs 3 crore annually from licensing. “We are aiming to earn Rs 100 crore after the implementation of the new trade licence policy. The process will begin as soon as the policy is approved. We will give a three-month bonus period to those who comply. The licences will be valid till April 2014,” said the official.

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