IMC slaps Rs 1.28 cr penalty on Indore hotel for ‘underpaying’ taxes
The Indore Municipal Corporation has slapped a penalty of Rs 1.28 crore on Radisson Blu Hotel for non-payment of “appropriate” property tax.indore Updated: Oct 07, 2015 18:43 IST
The Indore Municipal Corporation (IMC) has slapped a penalty of Rs 1.28 crore on Radisson Blu Hotel for non-payment of “appropriate” property tax.
The corporation’s market team conducted a physical inspection at the hotel on Monday and found that it had allegedly been evading payment of property tax against 2,01,772 square feet area for past five years.
IMC deputy commissioner Lata Agarwal said, “Radisson Blu Hotel has been underpaying their property tax to the corporation for past five years.”
“During the physical inspection it was found that the five star hotel has been paying property tax against 1,33,829 square feet area, whereas it actually possesses 3,35,601 square feet. We have imposed five times the penalty (on hotel) for defaulting on appropriate property tax,” said Agarwal.
Sources in the hotel, at first, maintained that they were unaware about the corporation’s inspection, but later said it was an attempt to defame their hotel and they had been paying appropriate tax to the corporation.
No one from the hotel management was ready to speak on record.
Meanwhile, the corporation team also conducted area assessment at Ruchi Soya Industries Limited situated in Mangaliya, and has demanded them to pay Rs 71.72 lakh as property tax against 7,69,527 square feet area that they possess.
“The Ruchi Soya Industries used to pay taxes to gram panchayat until 2014; but after inclusion of Mangaliya into municipal limits, they have to pay property tax to the corporation,” Agarwal said.
Of late, the corporation’s revenue recovery team has tightened the noose around property tax defaulters and has been imposing penalties.
With inclusion of 23 village panchayats into the municipal limits, the corporation’s revenue through property tax is likely to increase considerably.
Recently, the corporation slapped heavy penalties on Sica Education Trust and Hotel Infinity for making default payments. “We will soon issue notices to the defaulters,” she said.
DRIVE AGAINST TAX DEFAULTERS
The IMC’s market team conducted a physical inspection at the hotel on Monday
During the inspection it was found that the five star hotel had been paying property tax against 1,33,829 square feet area, whereas it actually possessed 3,35,601 square feet, according to IMC deputy commissioner Lata Agarwal
Hotel officials, however, denied the charge, saying it was an attempt to defame it. They also claimed they had been paying appropriate tax to the corporation
Recently, the corporation slapped heavy penalties on Sica Education Trust and Hotel Infinity for defaulting payments.