Tax on common area: MCD to withdraw order

NEW DELHI: Three days after a TOI carried a report regarding MCD’s decision to impose tax on the common area in co-operative group housing societies, the MCD’s Standing Committee has decided to withdraw the order. The decision making body has directed MCD commissioner KS Mehra not to issue more notices.
On November 6, 2011, TOI reported that the cash-strapped MCD had served notices to housing societies in Indraprastha Extension to pay tax for common areas like the guard room, society office, generator room, community hall, covered parking, basement parking and vacant land.In its notice, the civic agency had asked societies to pay arrears with an interest of 1% per month with effect from April 1, 2004.
“We have decided to withdraw the notice. We are not providing services like sanitation, maintenance of roads and streetlights in these societies. We can’t overburden them with additional tax,’’ said Yogender Chandolia, chairman, Standing Committee, MCD. As per the notice, the common area tax is applicable since April 1, 2004 — when the Unit Area Method (UAM) to calculate property tax was introduced. But residents claimed that the civic agency has never asked for it in the last seven years. Earlier, a similar notice was served to co-operative group housing societies in Dwarka.
The committee’s decision has brought relief to residents. “I’m happy that this unjustified and discriminatory additional tax demand has been withdrawn. I hope it is not revived after municipal elections next year,” said Vivian Fernandes, secretary, SRM Apartments.