MUMBAI (Metro Rail News): The Brihanmumbai Municipal Corporation (BMC) and metro rail contractors are currently entangled in a conflict over property tax, with the BMC issuing a one-week notice to the contractors to pay their outstanding dues. The dispute originated from the Central Board of Direct Taxes (CBDT) Order dated 25/10/2016, which stated that no income tax would be levied or deducted from compensation paid in respect of award. This order was implemented to ensure that contractors were not burdened with additional taxes during the construction and operation of metro rail lines.
However, the BMC has taken a different stance, insisting that contractors must pay property taxes for the properties used during the construction and operation of metro rail lines. The BMC has maintained that these properties are subject to property tax under the Brihanmumbai Municipal Corporation Act, 1988.
Argument between the BMC and Metro Rail Contractors
The BMC’s one-week notice to the contractors has escalated the conflict, with the contractors arguing that they are exempt from paying property tax under the CBDT Order dated 25/10/2016. The contractors have also argued that the properties used during the construction and operation of metro rail lines are not subject to property tax under the Brihanmumbai Municipal Corporation Act, 1988.
The BMC, on the other hand, has maintained that the properties are subject to property tax and that the contractors must pay their outstanding dues. The BMC has stated that it will take legal action against the contractors if they fail to pay their dues within the one-week notice period.
Conflict and Way Forward
The conflict between the BMC and metro rail contractors over property tax is a complex issue, with both sides presenting valid arguments. The BMC’s insistence on property tax payments is based on the Brihanmumbai Municipal Corporation Act, 1988, while the contractors’ argument is based on the CBDT Order dated 25/10/2016.
The conflict highlights the need for a clear and concise policy regarding property tax payments for properties used during the construction and operation of metro rail lines.
The BMC and metro rail contractors are at a crossroads, with the outcome of the conflict set to have far-reaching implications for the construction and operation of metro rail lines in Mumbai.
Discover the endless possibilities of our city’s Metro at InnoMetro, our flagship Expo and Conference. Be an active participant in shaping its future towards a more sustainable tomorrow. Stay informed and join us to take a step towards a brighter future.
