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HindustanTimes Sat,26 Jul 2014

Despite notification, civic bodies avoid service tax on parking

Ritam Halder, Hindustan Times  New Delhi, August 21, 2013
First Published: 23:30 IST(21/8/2013) | Last Updated: 01:05 IST(22/8/2013)

Even a month after the South Delhi Municipal Corporation had decided on the service tax issue on parking resulting in a minor Re 1 hike for residents to shell out every time they park their vehicles, the North and East civic bodies are still sitting on the issue.

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The notification issued by the Union service tax department to charge 12.36% service tax way back in March was to be effective from April 1 but even after around five months the civic bodies seem to be in no mood to implement it.

A senior official in the East corporation told Hindustan Times no action has been taken yet on the service tax issue. “Whatever South has done, we will do that. The letter, which was issued by the Union service tax department, didn’t come to us. We were informed about it by Hindustan Times. We have asked the South corporation to send us their preamble and we will do exactly that,” the official said.

The officials of the North civic body, on the other hand, are claiming that they have already put the issue in the preamble of the standing committee. “In the next meeting of the standing committee it will come. The move will be in similar lines of the South corporation,” he said.

On July 18, Hindustan Times had reported that the North Delhi Municipal Corporation, which was keeping mum over the issue, will follow its southern counterpart by getting the issue cleared by the standing committee, the east civic body claimed it hasn’t received the notification. Over a month has passed and still claims and promises seem to be the only action taken.

“The service provider is duty bound to charge from the consumers. That is what is written in the act and, thereby, car owners will be charged accordingly for every time they park their cars,” a senior official said.

The North Delhi Municipal Corporation has 116 parking sites, out of which 62 were tendered a few months back. A survey has been conducted for 100 other potential sites, out of which 25 have been sent for traffic clearance. It also has four-multilevel parking sites.

The East Delhi Municipal Corporation, on the other hand, has 30 sites and 45 more are in the process of being set up. Eight more are being planned but there are no multilevel parking sites in its jurisdiction.


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