GMC Struggles to Recover Rs.300 Crore in Unpaid Tax Dues
ECONOMY & POLICY

GMC Struggles to Recover Rs.300 Crore in Unpaid Tax Dues

The Ghaziabad Municipal Corporation (GMC) is facing difficulties in recovering nearly Rs.3 billion in tax owed by over 100 central and state government properties in the city. Despite several reminders, the corporation has yet to collect the dues.

According to Sanjeev Singh, GMC's chief tax assessment officer, a central government rule requires municipalities to levy service charges on government buildings for essential services like roads, water, drainage, and streetlights. In Ghaziabad, 69 state government properties owe a total of Rs.1.63 billion, with Rs.1.57 billion still unpaid. Additionally, 41 central government buildings have outstanding dues of Rs.2.80 billion, clearing only Rs.1.39 billion despite receiving notices.

Service tax is determined based on a building's valuation, with a 7% tax imposed on its annual rental value. GMC provides various amenities and charges between 33.5% and 75% of the annual rental value as a tax.

Previously, GMC issued notices to DMRC and NCRTC for unpaid dues; however, a government order exempted these agencies from municipal taxes.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The Ghaziabad Municipal Corporation (GMC) is facing difficulties in recovering nearly Rs.3 billion in tax owed by over 100 central and state government properties in the city. Despite several reminders, the corporation has yet to collect the dues. According to Sanjeev Singh, GMC's chief tax assessment officer, a central government rule requires municipalities to levy service charges on government buildings for essential services like roads, water, drainage, and streetlights. In Ghaziabad, 69 state government properties owe a total of Rs.1.63 billion, with Rs.1.57 billion still unpaid. Additionally, 41 central government buildings have outstanding dues of Rs.2.80 billion, clearing only Rs.1.39 billion despite receiving notices. Service tax is determined based on a building's valuation, with a 7% tax imposed on its annual rental value. GMC provides various amenities and charges between 33.5% and 75% of the annual rental value as a tax. Previously, GMC issued notices to DMRC and NCRTC for unpaid dues; however, a government order exempted these agencies from municipal taxes.

Next Story
Real Estate

Omaxe to Invest Rs 62 Billion in Hospitality Expansion

Omaxe has announced the launch of a dedicated hospitality business vertical with plans to develop 19 hotels across five states over the next four to five years as part of its strategy to strengthen recurring revenues and expand its integrated development ecosystem.The real estate developer proposes to invest approximately Rs 62 billion, subject to regulatory approvals and market conditions, to develop nearly 5 million sq ft of hospitality assets across high-growth urban centres, pilgrimage destinations and transit corridors.The proposed portfolio will be integrated with Omaxe's existing townsh..

Next Story
Infrastructure Transport

Third Railway Line Between Tatanagar And Adityapur Likely By September

The third railway line between Tatanagar and Adityapur is expected to be commissioned by September as work on the corridor advances, according to railway sources. The project to add a fourth line on the busy route is progressing and has been allocated Rs 50.89 billion (bn) in funding. The allocation underscores the focus on increasing capacity and easing congestion on the corridor. Relevant timetables are being adjusted to integrate the new capacity into regular operations. Construction activity has involved track laying, formation work and signalling upgrades along strategic stretches, with m..

Next Story
Infrastructure Transport

Indian Railways Approves Rs 2.7 bn Kavach Rollout in Odisha

Indian Railways has approved a Rs 2.7 billion (Rs 2.7 bn) plan to install the Kavach train collision avoidance system on 631 route kilometres in the East Coast Railway zone. The Ministry of Railways said the work will form part of a wider Kavach deployment programme that relies on an LTE based communication backbone rather than a standalone installation. The approval marks the latest stage in the steady expansion of the indigenous safety technology across the national network. The decision aims to enhance safety and reliability on corridors serving Odisha and adjoining areas. The project will ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement