Delhi: Palika Bazaar merchants can take service tax on license fees to court | Delhi News


NEW DELHI: Merchants in Palika Bazaar plan to take legal action against the decision of the New Delhi Municipal Corporation (NDMC) to impose a service tax on license fees from June 2007 to June 2017. Merchants claim that ‘They only had 30 days to submit the tax from the date of receipt of the notice.
Traders from Palika Bazaar and Sarojini Nagar recently wrote to the lieutenant governor, chief minister and NDMC chairman against the decision, calling it “illogical” to charge a lump sum for 10 years all of a sudden. .
“Neither in the license deed (during the renewal period) nor by officials was the concept of service tax billing spelled out to traders and, therefore, it could not be legally claimed. In addition, the amount mentioned in the act as the license fee includes all the fees and the amount, so there is no question of paying a service fee above the license fee, ”the petition said. traders at NDMC.
“The amount of the service tax is increased according to the market rent / store license fees. At Palika Bazaar, the amount is in lakhs. It is not our fault that the civic organization could not raise the bill earlier and now they are claiming an amount for 10 years all at once. We went through our lease deeds and found the charges illogical. The service charge for a store, whose monthly rent is Rs 50,000, will now rise to Rs 3.5 lakh. If we do not get a satisfactory response from the authorities, we will be forced to go to the High Court, ”said Baljit Kohli, president of the Palika Bazar Traders Association.
“We have asked the NDMC Estate Department officials to take into account our current situation and give us a discount and extend the deadline for submitting the amount,” said Ashok Randhawa of the Mini Traders Association. market, Sarojini Nagar.
A senior NDMC official, however, said the amount had been increased in accordance with the laws. “In addition, we have already paid the amount on behalf of traders to the Indian government. Notices of formal notice for the unpaid service charge have been sent to all holders concerned.

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