Levy of tax to BSNL by Local Bodies in Kerala

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Full text of letter No.AIBSNLEA/CHQ/CMD/2010 dated 21/09/2010 of All India BSNL Executives’ Association to Chairman cum Managing Director, BSNL, New Delhi

Various Tax issues of BSNL

1. One time building tax :- This is an item of tax levied by various local bodies such as Municipal Corporations Grama Panchayats etc., on newly constructed buildings as a one-time measure based on legislations made by state governments. State/ Central Govt. is exempted from this tax.
Consequent to the formation of BSNL on 1-10-2000 local bodies started levying BSNL this one-time Tax even for those buildings constructed far before 1-10-2000. This was challenged before the H’ble High Court of Kerala and obtained an order in our favour declaring that BSNL is not liable to pay one-time building tax for all those buildings constructed before 1-10-2010. It was also made clear that if at all some extensions are constructed to a building constructed before 1-10-2000, then BSNL is liable to pay one time tax only for that extended portion alone.(Judgment dt.21-07-2005 in WPC Nos. 8449,10265,10353,17887 of 2005 ).
2. ½ yearly/yearly building/property tax:- Govt. of India is fully exempted from this tax. Hence for all the properties/ buildings now under the custody of BSNL, but the title deed still remaining in the name of President of India/ Govt. Of India, BSNL is not liable to pay this tax. It will become liable for it only from the date of conveyance of deed from the name of President of India to the name of BSNL(Till date conveyance of title deed has not taken place). On receiving demand notices/ revenue recovery notices from local bodies/ revenue authorities, BSNL Kerala challenged them before Muncif Court/ Kerala High Court . The H’ble Court ordered government of Kerala to decide the claim for exemption in terms of sec.3(1) of building tax act (WPC No.32930/2007). Mean while finding large number of cases on this issue, Local Self Govt Department issued orders exempting BSNL from the payment of such taxes for all those buildings still in the name of Govt. of India.(Order no. 28321/L2/06/LSGD dated 17-08-2006 of govt of Kerala, Local self govt. Department) This is an achievement gained by the Kerala Circle and avoided recurring leakage of revenue to the tune of several crores. Other circles can also stop payment of such taxes if being claimed by local bodies there, by citing the court order. Refund can be claimed in cases where payments made already….. For more download letter from below download link,

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