“We have asked all parking contractors to start submitting the service tax with the service tax department,” said Mukesh Yadav, spokesperson of south Delhi corporation.
Sources said the corporation had earlier proposed that the contractors bear the burden of the tax but they refused, citing huge losses. The corporation too had expressed its inability to pay the service tax from its own coffer. So it decided to pass the burden on to the motorists.
A few weeks ago, HT had reported on the dispute brewing in the corporation over who will pay the service tax. Due to the dispute, the handover of 39 parking sites to new contractors had been delayed even though the re-tendering process had been completed over three months ago.