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

21 Oct 2024 CW Team

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.

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