SDMC serves notice to clubs for tax evasion

NEW DELHI: Private upscale clubs are now on the radar of the municipal corporations for property tax evasion.

NEW DELHI: Private upscale clubs are now on the radar of the municipal corporations for property tax evasion.

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South Delhi Municipal Corporation (SDMC) officials said more than five upscale clubs of south and west Delhi had been served notices for property tax evasion of over Rs 5 crore. The corporation was now carrying out a special investigation to identify other defaulters.

“As per the provisions of the DMC Act, property tax can be levied on club property, including the buildings and vacant land. There are tennis and badminton courts on the vacant land, where private functions are also held,” said additional commissioner (Taxes) Ram Mohan Singh.

Singh also countered the claims of private clubs that the land had been leased to them. The owner of the land was the Central Government and the DDA, he said.

“These clubs charge their members a lot. This makes them commercial properties. We have begun a probe to assess the total number of evaders. We will take strict action against them,” said Singh.

South Delhi mayor Shyam Sharma too echoed Singh and said the defaulter clubs would face action for large-scale evasion of property tax.

“Initial investigations have revealed most of these clubs are not paying the due amount of property tax. They have suppressed tax payment over the commercial use of various portions of the club. The clubs have also not included the value of the vacant land in the property valuation,” said Sharma.