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Millennium Post

Parking charges all set to head north in capital

The parking fee in the capital city is slated to increase because the three civic bodies have decided to pass the burden of service tax to contractors.
In a letter to the commissioners of the corporations, the Union ministry of finance has conveyed its decision to bring parking charge under the ambit of service tax.

‘Central government has imposed a 12.5 per cent tax on parking as service tax. As the contractors provide service to the persons who park their vehicles, it’s their duty to impose the tax and pay it to the service tax department under the Union ministry of finance,’ said South Delhi Municipal Corporation commissioner Manish Gupta on Tuesday.

Gupta presented a proposal before the standing committee on Tuesday to allow the contractors to charge service tax directly from consumers but it was deferred by the committee.
The corporation has allocated 73 parking sites to private contractors. However, the contractors were not notified about the service tax to be paid. Gupta explained that the contracts will have to be amended.

Payment of the new service tax will be applicable from 1 April, 2013.
Gupta, on being asked the reason for the late notification said, ‘The corporation itself was notified about the service tax very late and as soon as we got the notification we passed the notification to parking contractors.’

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