MIA to fight legal battle against rise in Gram Panchayat Tax
| Date :23-Nov-2020 |
Business Bureau :
In a recently held special general body meeting of the MIDC Industries Association (MIA), Hingna, the members raised the alleged hefty hike in the Gram Panchayat Tax and decided to fight a legal battle against it. The meeting was convened by MIA Hingna of its members to discuss the Gram Panchayat Tax issue at MIA House. Majority of industry members including Treasurer Muralimohan Pantula, other office-bearers and others were present in the meeting. At the outset, President of the MIA C G Shegaonkar gave a brief overview of the Gram Panchayat Tax issue and its current status to the members. He also addressed the members regarding the agenda for the Special General Meeting.
Secretary Sachin Jain gave a brief presentation of the Gram Panchayat Tax and briefed the members about how the tax calculation method and rules have evolved over the years. “Prior to the year 2000-01, Gram Panchayat Tax was calculated based on Capital Value or Rentable Value of a property. Thereafter, Gram Panchayat started calculating the tax on a square foot basis which led to manifold increase in the tax amount,” he highlighted. MIA had filed a suit in the court in 2004 to oppose the hike and the court gave the verdict in MIA’s favour in 2014. The court ordered to calculate the tax by the same method which was in vogue before the case was filed, and advised the Gram Panchayats to reassess the tax between the period 2001 to 2014 as per old method. However in December 2018, GR was released which directed the Gram Panchayat to calculate capital value of the property based on the indexation method as published by RBI every year, for the period 2001 to 2015, and thereafter 30 per cent for every four years slab as per GR of December 2015. This has resulted in an increase of taxes by 4 times from 2001 to 2020.
Also, in future the capital value shall be calculated based on the Ready Reckoner values of the Government of Maharashtra, as per GR of 2015 and the taxes thereon. MIA is anticipating a huge rise in taxes in coming future years. Hence a legal course of action was suggested. MIA said that individual members may approach their respective Gram Panchayat office for calculation, clarifications and to check their outstanding amount. They are however advised to pay some amount of tax which they deem fit, otherwise Gram Panchayat has sounded to take cohersive action against industries.
Payment of Gram Panchayat Tax may also be done to MIDC. However current tax amount and old dues have to be settled at the respective Gram Panchayat office. The legal course of action will cost Rs 6 lakh to MIA and thus it was decided that all the will members contribute at the rate of Rs 2/sq.m. (subject to maximum amount of Rs 50,000) of their respective plot area by November 30, 2020. As regards industries falling under Nagar Parishad namely Wadi area will be taken up separately with concerned authorities. Members in majority were of the opinion that they should go ahead with the legal way and related suits should be filed in the court. Following the queries, answers and discussions with the present members, Sachin Jain proposed the vote of thanks.