Officials said the dues on some of these departments have not been paid in the past 10 years and so the GMC has started sending recovery notices.
“All establishments — central or state — falling under the municipal limits are liable to pay property and service taxes to the GMC and there is a central government order on it,” said Sanjeev Singh, chief tax assessment officer of GMC. “There are many departments which have not paid their dues in a decade, and now we are sending notices to them.”
The state electricity department, for instance, has not paid its dues in more than 10 years and in the assessment done for the financial year 2020-21, the outstanding amount stands at Rs 83.03 crore. “Similarly, the Delhi Metro owes Rs 45.37 crore to the civic body, followed by some central and state government office buildings at Rs 39.80 crore and Rs 26.88 crore, respectively,” Sinha said.
The Delhi Metro Rail Corporation, while responding to the GMC’s notice, has said that the Ghaziabad Development Authority (GDA) should be paying the tax instead.
“The Indian Railways has also not cleared taxes to the tune of Rs 7.2 crore, and together these departments owe over Rs 202 crore,” the chief tax assessment officer said.
Explaining the calculation of service tax, Sinha said that “it’s based on the valuation of a building”. “GMC provides for roads, electricity, water pipeline and other amenities in the vicinity of the building and based on the level of services provided, we charge between 33.5% to 75% of the annual rental value on the custodian of establishments,” he said.
“In case of DMRC, the GMC is well within its rights to impose service tax on metro stations that fall within the civic body’s limit on the Red Line metro corridor. As for DMRC’s contention that GDA should be paying the dues, it’s for the two agencies to sort it out,” the officer said.
Property tax, Sinha said, includes house tax, water tax and sewer tax on all establishments availing the services within the municipal limits of the city.