Surat Municipal Corporation starts recovery of Rs 46 cr property tax from Reliance, BSNL

  • | Tuesday | 30th April, 2019

Surat Municipal Corporation (SMC) has started the exercise to recover property taxes worth around Rs 46 crore — pending since 2013 — from Reliance Communications and BSNL. All mobile service provider companies had paid the pending property taxes to the SMC, except the Reliance and BSNL. The pending property tax on Reliance is around Rs 24 crore, while BSNL is around Rs 22 crore, said an official with the tax department of the SMC. Sources said that the BSNL has 250 mobile towers, while Reliance has 152 in Surat city. Following the apex court’s order, the SMC had started issuing bills of property taxes to all the mobile service provider companies.

Surat Municipal Corporation (SMC) has started the exercise to recover property taxes worth around Rs 46 crore — pending since 2013 — from Reliance Communications and BSNL. Advertising The civic body issued the property tax bills to both the companies two days ago. The process was initiated after the Supreme Court on April 4 rejected a review petition by both these companies against its earlier order stating that mobile service providers, which had installed towers on top of buildings, should pay property taxes to the SMC. The pending property tax on Reliance is around Rs 24 crore, while BSNL is around Rs 22 crore, said an official with the tax department of the SMC. Asked about the delay in initiating the process, the official said the SMC staffers were busy in the Parliamentary election-related work in the last few days. Advertising The SMC authorities, however, claimed that they have got intimation from both these companies that they will pay the pending dues in the next 15 days. The SMC had in 2013 instructed the mobile service provider companies, which had erected towers on the terrace of residential and commercial buildings in Surat city, to pay property tax. Sources said that the BSNL has 250 mobile towers, while Reliance has 152 in Surat city. Reliance, though, has stopped its operation since 2013, its mobile towers are still there on top of various buildings in the city, sources added. Both the companies, however, approached the Supreme Court in 2013, stating that mobile towers on terrace do not come under the purview of the property tax. The apex court had on December 23, 2016, passed an order in favour of the SMC, directing the mobile service provider companies to pay the property taxes. Following the apex court’s order, the SMC had started issuing bills of property taxes to all the mobile service provider companies. All mobile service provider companies had paid the pending property taxes to the SMC, except the Reliance and BSNL. The Reliance and BSNL had then filed a review petition at the apex court against its order. It was rejected on April 4, 2019.

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