With the municipal corporation (MC) of Chandigarh receiving regular complaints of overcharging from paid parking contractors in the city, the corporation has finally decided that if a contractor is caught overcharging for the seventh time, he will pay Rs. 10,000 as fine. For the first overcharging complaint, the fine is Rs. 500, followed by 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.
Also, if a contractor will surrender parking lot for second time, the MC will blacklist him. These decisions will, however, get the final nod in the finance and contract committee (F&CC) meeting scheduled to be held on Friday.
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 them to take legal opinion in the issue, but as far as service tax from April 1, 2013, is concerned, the contractors will print the charges of service tax on the parking slip. For instance, on a parking slip of Rs. 5, Rs. 4.45 will be the charges, while 55 paisa will be of service tax.
The paid parking contractors are protesting against the 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. The contractors say that why should they pay the tax when they were not charging the same from the people.
The MC has decided to charge service tax from contractors retrospectively from 2012 to 2014. The civic body had already paid service tax to the government and later informed the parking contractors to pay it retrospectively.
Pardeep Chhabra, former mayor and member of F&CC, said, “We have asked the officers to take legal opinion on charging of service tax since July 1, 2012. The final nod to increase fine for overcharging will be given in the committee meeting on Friday.”