New Delhi: Connaught Place traders approached New Delhi Municipal Council (NDMC) vice-chairman Satish Upadhyay over the ongoing drive to seal shops for non-payment of property tax on Sunday.
The traders sought implementation of a uniform tax assessment method (UAM) for calculating the tax and submitted a representation clarifying the matter. Upadhyay agreed to pursue the matter with chairman Amit Yadav.
New Delhi Traders Association (NDTA) said that they were not against the recovery of appropriate dues but the way the recovery campaign was being carried, which was against the provisions of the NDMC Act. “The process is that first NDMC does the assessment and after 30 days’ time if payment is not made, the council can issue notice for recovery, seal bank account, attach premises or the rent. But nowhere in the act sealing of shops is given,” said Atul Bhargava of NDTA.
NDTA highlighted that the dues have been pending in crores of rupees over several years due to no clarity on assessment, leading to undue hardships for both landlords and tenants. The situation resulted in closures as huge liabilities made it impossible for tenants to run shops.
“I assured traders to address the issue in collaboration with key stakeholders, including senior council officials, the lieutenant governor and the ministry of home affairs,” said Upadhyay, while agreeing to the adoption of a unified tax system. “MCD has already adopted the UAM in its area and it is not only convenient but also a right choice for all. Efforts will be made to expedite the process for implementing the method. But I request the traders to fulfil their responsibilities,” he added.
Presently, NDMC claims to use actual or comparable rent and UAM for assessment of property tax. UAM (introduced in 2009) is used by 90% taxpayers, and they have not challenged it at any legal platform, said officials.
For amendment in NDMC act to implement UAM, the council sent a proposal to the home ministry two years ago. “Later some observations were made by the ministry and NDMC is in the process to send replies,” said an NDMC official.
In NDMC area, 15 shops were sealed last week for non-payment of tax dues and later eight were desealed after they made payment or gave assurance.
The traders sought implementation of a uniform tax assessment method (UAM) for calculating the tax and submitted a representation clarifying the matter. Upadhyay agreed to pursue the matter with chairman Amit Yadav.
New Delhi Traders Association (NDTA) said that they were not against the recovery of appropriate dues but the way the recovery campaign was being carried, which was against the provisions of the NDMC Act. “The process is that first NDMC does the assessment and after 30 days’ time if payment is not made, the council can issue notice for recovery, seal bank account, attach premises or the rent. But nowhere in the act sealing of shops is given,” said Atul Bhargava of NDTA.
NDTA highlighted that the dues have been pending in crores of rupees over several years due to no clarity on assessment, leading to undue hardships for both landlords and tenants. The situation resulted in closures as huge liabilities made it impossible for tenants to run shops.
“I assured traders to address the issue in collaboration with key stakeholders, including senior council officials, the lieutenant governor and the ministry of home affairs,” said Upadhyay, while agreeing to the adoption of a unified tax system. “MCD has already adopted the UAM in its area and it is not only convenient but also a right choice for all. Efforts will be made to expedite the process for implementing the method. But I request the traders to fulfil their responsibilities,” he added.
Presently, NDMC claims to use actual or comparable rent and UAM for assessment of property tax. UAM (introduced in 2009) is used by 90% taxpayers, and they have not challenged it at any legal platform, said officials.
For amendment in NDMC act to implement UAM, the council sent a proposal to the home ministry two years ago. “Later some observations were made by the ministry and NDMC is in the process to send replies,” said an NDMC official.
In NDMC area, 15 shops were sealed last week for non-payment of tax dues and later eight were desealed after they made payment or gave assurance.