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Taxation

Nagpur Municipal Corporation registers highest Local Body Tax in January

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The Times of India           05.02.2014

Nagpur Municipal Corporation registers highest Local Body Tax in January

NAGPUR: In some goods news for the cash-strapped Nagpur Municipal Corporation (NMC), the revenue from Local Body Tax (LBT) has increased to Rs 37.05 crore in January making it highest ever monthly collection since octroi abolishment.

According to data available with the civic body, revenue of Rs 31.75 crore came from LBT cess, Rs 9.22 crore from transit pass and Rs 4.65 crore from stamp duty. The revenue from octroi in January 2013 was Rs 40.92 crore for a difference of just Rs 4 crore.

The total revenue this fiscal from April 1 to January 31 was Rs 283.20 crore as against Rs 393.86 crore last year. The revenue deficit counts to Rs 110 crore.

The revenue from LBT increased only after searches and action since October 2013. Revenue of Rs 5.86 crore was collected in April 2013 followed by Rs 15.02 crore in May, Rs 30.01 crore in June, Rs 35.60 crore in July, Rs 29.06 crore in August, Rs 29.47 crore in September, Rs 32.93 crore in October, Rs 34.67 crore in November and Rs 33.53 crore in December last year.

 

VMC gives relief in proposed tax hikes

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The Times of India           05.02.2014

VMC gives relief in proposed tax hikes

VADODARA: The standing committee of Vadodara Municipal Corporation (VMC) reduced the hike in commercial tax proposed by administration while clearing the draft VMC budget for Rs 3,184 crore for the financial year 2014-15. The draft budget had raised the factor used to calculate the property taxes for commercial properties.

The VMC administration had proposed to raise the multiplying factor for most commercial properties to 5.6 from the existing factor of four. But the standing committee of the VMC on Tuesday reduced this to 4.5.

The standing committee has suggested a cut of Rs 3.42 crore in the revenue budget to take care of the deficit caused by the reduction in the commercial tax collection due to the reduction in the multiplying factor. By doing so it has also maintained the surplus of Rs 73 crore in the revenue budget.

The standing committee has also made a series of other decisions to reduce the burden on citizens. It has been decided to reduce the charges for digging trenches on VMC roads and property for various lines from Rs 2,500 to 1,500. The charges for a Gujarati copy of birth and death certificates have been reduced from Rs 80 to Rs 25.

The committee has proposed to bring down the charges of providing water tankers to Rs 300 from Rs 400. For religious events, this has been pegged at Rs 150. Forms for birth, death and marriage certificates will now be provided free.

Laser fountain not at any city garden

Vadodara standing committee chairman Hitendra Patel said after the budget meet that the multimedia laser fountain that was mentioned in the draft budget would not come up at any garden in the city. Patel also clarified that the VMC would not demolish the 'atithi gruhs' or marriage halls rented to citizens near the garden for the project. "There is no formal proposal before us in this regard and the question of demolishing these facilities does not arise. Any demolition will only be done to renovate them," he said.

Cricket stadium not a priority

The project of a cricket stadium in the city was not a priority for Vadodara Municipal Corporation (VMC), standing committee chairman Hitendra Patel said while giving details of the 2014-15 budget. "It is a suggestion and we are carrying it forward. It will be done only on a public-private partnership (PPP) mode," he said. The stadium is proposed to be constructed from land that the civic body will receive after deduction of land while drawing town planning schemes. While the draft budget presented by VMC administration did not clarify the mode that VMC will adopt for the project, the standing committee clarified that it would be through the PPP route.

 

24 Govt Depts Among BBMP's Tax Defaulters

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The Indian Express              28.01.2014

24 Govt Depts Among BBMP's Tax Defaulters


While the BBMP is struggling to collect dues from property tax defaulters, more than 24 properties belonging to ten State and Union government departments have not paid their dues for many years.

As per the Karnataka Municipal Corporation (KMC) Act, State and Union government departments have to pay service charge on their properties to  City Corporations — in Bangalore, it is the BBMP.

The government departments have to pay only 25 per cent of the property tax which is collected as service charge.  For instance, if the property tax towards a particular government property is calculated as `1 lakh, the department has to  pay just `25,000 as service charge to the BBMP.

Defaulters

Some defaulters are Karnataka State Road Transport Corporation (KSRTC), Bangalore Metropolitan Transport Corporation (BMTC), Karnataka Housing Board (KHB), Karnataka State Tourism Development Corporation (KSTDC), Karnataka State Police (KSP),  Transport Department, Karnataka State Pollution Control Board (KSPCB), Bharat Sanchar Nigam Limited (BSNL), Food Corporation of India (FCI) and Bharat Heavy Electrical Limited (BHEL).

Of these 24 government properties, 12 belong to the KSRTC and the BMTC. When contacted, Transport Minister R Ramalinga Reddy, who is also Bangalore Urban District In-charge Minister, told Express that one can pay tax from April to March (financial year).

“This year, as there is time till March, they will pay. I will also direct them to pay their dues, if any,” he added.

No Beating Drums This Time

A BBMP official said it is not easy to collect the service tax.

“We can neither go beat drums in front of their building nor confiscate their property as an attachment. Ultimately, it will be an embarrassment to the State government. Working under the government set-up, we cannot take this step,” he said.

Chairman of the BBMP’s Standing Committee for Taxation and Finance Dr MS Shivaprasad said the matter has  been brought to the notice of the Commissioner.  “They will take action,” he said.

Commissioner M Lakshminarayana blamed lower-level officials working in these departments for the delay in payments.

“It is because of their negligence that dues are not paid. It is not that they have to pay from their pocket, the department has to pay. I shall bring it to the notice of  senior officers,” he said.

“Even then, if they do not pay their dues, we might think of disconnecting water supply or other facilities. But I am sure, they will pay,” he added.

 


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