SDMC mulls action against clubs for evading property tax

With many upscale clubs owing property tax outstandings to the tune of several crores of rupees, South Delhi Municipal Corporation is planning action against them.
"The defaulter clubs will have to face action as large scale evasion of property tax by them has been unearthed by the Assessment and Collection department of South Delhi Municipal Corporation," SDMC mayor Shyam Sharma said.
Investigations have revealed that most of these clubs are not paying correct amount of property tax, he said. The main areas where tax payment has been suppressed are related to the commercial use of various portions of these clubs and non-inclusion of their vacant land in the annual evaluation of the property, he said.

The outstanding amounts of property tax against various clubs are Panchshila (Rs 3 crore), Anand Niketan (Rs 74.99 lakh), Safdarjung Enclave Club (Rs 60.75 lakh), Sarvodaya Enclave Club (Rs 76.76 lakh) and Janakpuri Club (Rs 19.71 lakh).
Investigations in the cases of other clubs located in West, Najafgarh and Central zones of the SDMC, are in progress, he said.
The Assessment and Collection Department, SDMC, plans to target all such clubs to recover property tax dues together with interest and penalty in the coming days.
As per provisions of the Delhi Municipal Corporation Act, property tax is leviable in respect of Club property, including built-up portion as well as vacant land which is used for tennis court, badminton court, holding parties, private functions and parking, said Ram Mohan Singh, Additional Commissioner (taxes) of SDMC.