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Chandigarh's municipal body asserts Panjab University must pay shop property tax

Synopsis

Chandigarh's municipal corporation has resolved a long-standing property tax dispute by transferring the responsibility for tax payments from shopkeepers to PU. The municipal body has recalculated the tax liability at Rs 25.22 crore, now exclusively designated for PU to settle. Previously, recovery notices were issued to shopkeepers, but they contended that they were tenants, not owners. This matter was discussed within the MC's general house, leading to the unequivocal decision that PU, as the lessee of the shops, bears the sole responsibility for property tax payment. The prolonged dispute between PU and MC has endured for months.

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Dispelling the uncertainty surrounding property tax assessments for shops within Panjab University (PU), the Chandigarh municipal corporation has adopted a definitive stance, shifting the responsibility for tax payments from shopkeepers to PU itself. In a decisive move, the municipal body has undertaken a thorough reassessment of the total tax liability, now quantified at Rs 25.22 crore, which unequivocally falls upon PU to discharge. Municipal records distinctly underscore PU as the most substantial defaulter in the realm of property tax. Prior to this resolution, the municipal corporation had embarked on an initiative to extract tax dues from shopkeepers through the issuance of recovery notices, each specifying a time-bound obligation to settle their arrears.



However, the shopkeepers contested this approach, asserting their role as tenants rather than proprietors of the shops. The matter was subsequently elevated for deliberation before the members of the MC’s general house, an event that transpired a few months ago. This vexing issue underwent exhaustive scrutiny within the tax branch, a process conducted meticulously with strict adherence to the rules, norms, and directives, all under the diligent oversight of municipal commissioner Anindita Mitra. The outcome of this thorough examination culminated in an unequivocal decision: PU, as the entity that has leased the shops, bears the sole responsibility for property tax payment, absolving the shopkeepers from this financial burden.



With the revised calculations now meticulously compiled, the municipal corporation is poised to dispatch revised recovery notices forthwith to PU authorities. These notices, devoid of ambiguity, will demand prompt settlement of the tax liability without any further procrastination. Notably, a significant portion of these outstanding tax dues has languished for an extended duration, despite a barrage of appeals, entreaties, and discussions initiated by the municipal corporation in its earnest pursuit of redress from PU. This protracted dispute between PU and MC, revolving around the contentious issue of property tax, has persisted for an extended span of time. PU, steadfast in its position, consistently argued that it bore no obligation for the historical tax arrears, citing a myriad of reasons.



Concurrently, the municipal corporation remained resolute in its assertion that PU unequivocally falls within the purview of property tax, rendering it liable for the discharge of its financial obligations. The matter assumed such gravity that it eventually found its way to the attention of the Punjab governor and the UT administrator, demonstrating the multifaceted dimensions of this enduring fiscal conundrum. In a decisive move, Chandigarh's municipal corporation has resolved the property tax dispute, shifting the onus from shopkeepers to PU. The recalculated tax liability falls squarely on PU's shoulders. This resolution marks the end of a protracted conflict, underscoring the importance of financial clarity within such arrangements.



 

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