Looking for ways to increase its revenue, the Municipal Corporation of Delhi (MCD) has decided to collect service tax from power distribution companies, an official said on Friday.
"Discoms should pay service tax to the MCD in effect from today (Friday), which amounts to approximately Rs 10 crore annually. The decision was taken in the meeting of municipal property tax officers," said Ved Prakash Gupta, chairman of the special high-powered property tax committee.
He also said that a five-member sub-committee will be constituted to collect the tax.
"They will take care of the issue of payment of arrears of service tax prior to February 2010, and tax on vacant land and that of sub-station areas under discoms," Gupta added.
First Published: Nov 19, 2010 20:20 IST