Prominent city clubs not paying due tax

The South Delhi Municipal Corporation has discovered largescale evasion of property tax by several upscale clubs in South Delhi. Investigations by the SDMC’s assessment and collection department have revealed that most of these upscale clubs are not paying correct amount of property tax. According to the SDMC, the main areas where tax payment has been suppressed is commercial use of various portions of the club and non-inclusion of vacant land of the clubs in the annual value of the property. SDMC mayor Shyam Sharma has warned that defaulter clubs will have to face action.

During investigation, the SDMC found that most of the clubs situated in South Zone had already been investigated. It also found that Panchshila Club had not included in its returns around five acres of land used for parking, commercial functions, and tennis and badminton courts. “The total demand outstanding against this club is approximately Rs 3 crore up to March 2016,” said Mr Sharma.

Giving details of the defaulting clubs, Mr Sharma said the outstanding demand against other clubs located in South Zone is Rs 7,499 lakh against Anand Niketan Club, Rs 60.75 lakh against Safdarjang Enclave Club and Rs 76.76 lakh against Sarvodaya Enclave Club. “In Janakpuri Club, the demand outstanding is Rs 19.71 lakh. The investigations in the cases of other clubs situated in West, Najafgarh and Central Zones of the SDMC, are in progress,” added Mr Sharma. The SDMC’s assessment and collection department plans to target all such clubs to recover property tax dues along with interest and penalty. “As per provisions of the DMC Act, property tax is leviable in respect of the club property, including built-up portion as well as vacant land which is used for tennis courts, badminton courts, holding parties and parking,” said additional commissioner (taxes) Ram Mohan Singh.