The parking charges in the city are set to increase slightly with the South Delhi Municipal Corporation (SDMC) allowing parking contractors to charge service tax from the users. However, the political wing of the corporation has passed the imposition of services tax on the executive wing saying the decision to impose service tax was taken by the Central Government.
A proposal in this regard was placed before the Standing Committee on Tuesday for approval. It read, “Allowing the collection of service tax of Rs 1, from both four-wheelers and two-wheelers. Deficit liability of service tax will be borne by the contractors for the convenience of collecting it from consumers by rounding off to the nearest rupee, over and above the fixed parking charges from the end users by existing parking contractors.”
The Standing Committee, however, sent the proposal back to Commissioner Manish Gupta for further action. leader of House Subhas Arya said that the Centre has imposed a 12.5 % tax on parking as service tax from the current fiscal year. As the contractors provide service to the users, they are eligible to collect the tax and pay it to the service tax department under the Union Ministry of Finance.
“The BJP is committed to not impose any new tax. We have sent the proposal to the commissioner without taking any decision on it," he added.