SCB waits for funds as tax arrears mount

SECUNDERBAD: The cashstrapped Secunderabad Cantonment Board (SCB) is now eagerly looking forward to receive the service tax dues from various government departments including the police.
The list of defaulters is quite long and includes major state and central government departments like railways, revenue, regional transport authority , Telangana State Road Transport Corporation, police and power utilities.
Section 109 of the Cantonments Act, 2006, provides for payment to board as service charges by central and the state governments. The service charges are calculated at the rate of 33.33 per cent of the rate of property tax levied on private properties in the cantonment. The service charges collected by cantonment boards become part of the cantonment fund. The money should be utilised as per budgetary sanctions.
“As these government agencies utilise cantonment land for establishing their offices, they should pay service charge to the board. The charge should be paid annually. Though a few departments pay service charge regularly , many do not bother to clear the dues.
The police, TSSPDCL, revenue and RTA have not been paying service charges. As a result, the SCB is facing severe shortage of funds. Various development projects have been held up. We are unable to lay cement concrete roads, lay new water pipelines and maintain sewer lines in all the eight civilian wards,“ a senior SCB official said.Many departments have not paid service charge for the last five years. The SCB sent several reminders to the defaulters, but only a few government departments had responded. Many departments complain that they do not have enough budgetary provisions to pay service tax to the board.
Secunderabad Cantonment Board chief executive officer Sujatha Gupta said the board had sent an official communiqué to the police department urging it to pay the dues. “We are awaiting reply . Defence establishments are exempted from the service charges,“ she said.