MCD,DMRC break deadlock,come to consensus on property tax

After several spats between the Municipal Corporation of Delhi and the Delhi Metro Rail Corporation over property tax,the two organisations have finally arrived at a solution.

After several spats between the Municipal Corporation of Delhi (MCD) and the Delhi Metro Rail Corporation (DMRC) over property tax,the two organisations have finally arrived at a solution. In a meeting held in March between MCD Commissioner and the DMRC,it was decided that DMRCs assets on MCD land will be divided into three categories,and each of the categories will pay a separate rate of service tax.

The property will be divided into the essential,commercial-1 and commercial-2 categories,based on its nature of usage. On essential property of the DMRC,such as railway lines,yards,and workshops,5 per cent of the property tax will be paid as service tax. On commercial-1 compounds (such as malls),50 per cent will be charged while,on commercial-2 compounds,the rate will be 75 per cent.

The standing committee of the MCD passed the proposal during a meeting on Wednesday.

The Delhi Metro had paid MCD a provisional amount of Rs 2.58 crore after the meeting in March. Earlier,it had paid the civic body Rs 37 lakh.

The two agencies were embroiled in a series of spats over use of space for public use and commercial activities. In June last year,the MCD had sealed a few commercial establishments of the DMRC at the Inderlok Metro station. The civic body had justified its act by saying that the station was not paying the charges required. It also wanted the DMRC to pay property tax for using its land to build stations and tracks.

To resolve the issue,Lieutenant-Governor had held a meeting with the two agencies in January. After a detailed discussion,it was decided that service charges shall be payable with respect to various properties of the DMRC under three categories. Now,the DMRC is supposed to submit a list of properties under it divided into three categories, said a senior MCD official.

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