Bengaluru civic body’s ultimatum to big property tax evaders

A survey has found that 10 companies had declared a total area of 1,09,27,819 square feet for tax purposes, whereas the tax payable is for 1,52,75,091 square feet

Bengaluru civic body’s ultimatum to big property tax evaders

The Bruhat Bengaluru Mahanagara Palike (BBMP), Bengaluru’s civic body, has told big tax evaders to pay their property tax dues running up to a combined amount of over Rs. 231.66 crore within a month or face fines double the pending tax.

“One-month time has been granted to the tax evaders. From Wednesday until January 13, 2017, everyone can pay taxes including those who have falsely declared property taxes. Failing to do so, they would invite trouble,” BBMP commissioner N Manjunatha Prasad said.

BBMP’s revenue officers randomly selected two properties each from its zones and found variations in the property tax declaration.
According to a report in The Hindu published in June, though the companies paid the property tax under the self-assessment scheme, the BBMP found that there is a difference between what was declared and the actual amount that is owed to the civic agency.

A survey, undertaken from February to April after the self-assessment made by owners of commercial properties, found that 10 companies had declared a total area of 1,09,27,819 square feet for tax purposes, whereas the tax payable is for 1,52,75,091 square feet.

“These 10 companies have to pay up for the difference and the total due is Rs. 231.66 crores. Under section 147, schedule 3 of the Karnataka Municipal Corporations Act, we are entitled to take action against such defaulters. We will be sending notices. If they do not respond, we will initiate measures to recover the tax,” M Shivaraju, chairperson of the BBMP’s Standing Committee for Taxation and Finance, had said then.

Among the major defaulters are Bagmane Tech Park (Rs. 91.67 crore), Chaitanya Properties (Rs. 41.61 crore), GE India (Rs. 37.32 crore), Salarpuria (Rs. 18.6 crore), Orion Mall (Rs. 15.38 crore), Nitte Menakshi Institute of Technology (Rs. 13.91 crore), Leela Palace (Rs. 5.66 crore), Federal-Mogul Goetze (India) Limited (Rs. 3.60 crore), Accenture (Rs. 2.40 crore) and Golden Hill Street (Rs. 2.05 crore).

Earlier this year, the civic body had seized movable assets of Manyata Tech Park, which owes close to Rs. 273 crore.