Finally, taking note of regular complaints of overcharging from paid parking contractors, the municipal corporation has decided to impose a fine of Rs 10,000 if the contractor is caught overcharging for the seventh time.
The decision will get the final nod in the finance and contract committee (F&CC) meeting scheduled on Thursday.
For the first overcharging complaint, the fine is Rs 500, then Rs 1,000, Rs 1,500, Rs 2,500, Rs 5,000 and Rs 7,500 for second, third, fourth, fifth and sixth complaints respectively.
Regarding the demand of contractor not to charge service tax from July 1 2012, the F&CC members have thrown the ball in the court of MC officers.
They have asked MC to take legal opinion on the issue, but as far as service tax from April 1 2013 is concerned, contractors will print the charges of service tax on the parking slip.
For instance, on parking slip of Rs 5, Rs 4.45 will be charges, while 55 paise will be service tax.
The paid parking contractors have protested civic body’s decision to charge 12.36 % service tax from July 1, 2012.
As a result, out of total 24 parking lots, 12 contractors left the contract, questioning why they should pay the tax when they weren’t charging it from visitors.
HT has repeatedly highlighted how paid parking infrastructure in city is mismanaged. With no staff to regulate parking and the ever-increasing number of cars, chaos rules at the parking lots resulting in harassment of visitors.
At lots that are operational, absence of CCTV cameras and MC staff allow fleecing of visitors to continue unabated.