MCG sending inflated tax bills, say Gurgaon industrialists

Several industrial units in the city have alleged the Municipal Corporation of Gurugram (MCG) of harassing them by sending inflated property tax bills.

Several industrial units in the city have alleged the Municipal Corporation of Gurugram (MCG) of harassing them by sending inflated property tax bills. Industrialists said the MCG action comes even when the matter of paying retrospective tax at commercial rates is pending for consideration with the principal secretary, industry and commerce (PSI), of Haryana government.

Industrialists said property tax is being demanded for the period prior to 2013 at a high rate. (HT File)

In 2013, the MCG had sent notification to the industries regarding property tax calculation on commercial rate applicable from 2010-11.

The owners of the Udyog Vihar industries held a meeting on Tuesday to discuss the issue and they are likely to meet principal secretary Devender Singh soon. Industrialists said property tax should be charged at industrial rates only.

Ashok Kohli, vice-president, chamber of industries, Udyog Vihar, said, “The MCG is charging tax with effect from the date of inception of the corporation. For the period prior to 2013, tax is being demanded at a much higher arbitrary rate.”

“There was no property tax on industry before 2010-11 in Haryana. The notification makes it clear that a tax payer has the option to pay at the new rate or old rate for the period prior to notification that was issued in 2013 October,” col (retd) Raj Singla, president, chamber of industries, Udyog Vihar, said.

The industrialists said property tax should be at industrial rate only so that self-assessment becomes possible and they do not need to visit the MCG office to know the tax amount.

“Over 60% properties have been taxed at the commercial rate of Rs 15 per sq ft, which is 52 times more than the industrial rate of Rs 5 per sq yd plot area. The commercial rate is defined for malls and shops as per notification and cannot apply to industry,” Singla said

Another member of the chamber of industries said the civic body is harassing industry owners.

“Officials are not accepting documents submitted and outstanding dues are being reflected even after tax is paid as per calculations done by their staff,” Aseem Takyar, an activist, said.

MCG joint commissioner YS Gupta said, “The MCG notification has enough information for self-assessment and if anyone has problems, they can approach the office.”