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IT Firms May Face Land Tax
Posted by Pradeep Sadanapalli | July 4, 2008 | 385 views
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Loading ...Industries, IT firms and infrastructure project developers could face a additional charges on two fronts.
The government has issued notices to the agencies which alloted land to private industries and companies, to pay 10 per cent of the basic market value as one-time charge for using the land for non-agricultural purposes.
These notices may impact all IT firms including those in Hitec City and Madhapur where the basic market value is now Rs 15 crore per acre.
The government wants these agencies to pay 10 per cent of basic market value as alienation cost for assigned land. Till now the government was collecting the fee only when its own land was alienated.
The collection of onetime conversion charges were put on hold following resistance by the APIIC.
“The APIIC objected to the levy of fresh charges because huge amounts were paid for conversion from agricultural to non-agricultural use at the time of forming industrial layout,” a senir revenue official pointed out.
The government introduced one-time conversion charges in place of nonagricultural land assessment cess which was levied annually. “Following the industrial policy we have asked the government to exempt the companies from paying fresh charges,” said APIIC managing director B.P. Acharya.
SOURCES:
Deccan Chronicle
Topics: Finance, Business News |
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