BHOPAL: Bhopal Municipal Corporation (BMC) is all set to serve a notice to Bhopal Smart City Development Corporation Limited (BSCDCL) to recover service tax worth Rs 17 crore. This will be the first example in the state when local civic body will collect service tax from smart city company.
Assistant commissioner Sandhya Chaturvedi said recovery notice has been prepared. “Notice will soon be served to BSCDCL,” she said. The amount is calculated from three years of pending tax on the smart city’s hyped project area based development (ABD) area near TT Nagar. The ABD is being developed on 342 acres and the project is underway for over three years on which the tax amount is due.
The notice was to be served six months ago but due to some dispute, the civic body failed to serve it. Now, they have again decided to serve it to BSCDCL, soon. The BSCDCL, on the other hand, is clueless about any such tax they are supposed to pay. BMC has calculated the amount for years 2017-18, 2018-19 and 2019-20. The service tax is collected from government buildings for services like sewage, water, waste collection, water supply line etc.