North, east civic bodies mum over service tax on parking | delhi | Hindustan Times
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North, east civic bodies mum over service tax on parking

delhi Updated: Jul 18, 2013 02:41 IST
Ritam Halder

Even as the South Delhi Municipal Corporation is set to impose service tax on parking charges on a directive from the Centre, the east and north civic bodies seem blissfully unaware of the situation.

While the North Delhi Municipal Corporation, which was keeping mum over the issue, might follow its southern counterpart, the east civic body claims it hasn’t received the notification.

A source in the North corporation said it was waiting for the South corporation to take some action and follow it accordingly. "The contractors are asking for clarification. However, there is no clarity. Now that it has been declared that the people will pay service tax in South, we will also follow it. It has become a norm of sorts that what one corporation does, the others follow," the source said.

“We will put matter up in the preamble and take approval so that we can change it,” a senior North official said, adding that the notification reached them in April or May.

A senior East corporation official, on the other hand, said the notification was yet to reach them.

“Nothing has been finalised yet. The notification hasn’t reached us. It might have come to the finance department,” he said.

The Union ministry of finance had conveyed its decision to bring parking charge under the ambit of service tax by sending a notification in March.

It stated that payment of the new service tax will be applicable from April 1, 2013.

“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.