NMMC to keep eye on IT companies for flouting tax exemption norms
CBD BELAPUR: Navi Mumbai Municipal Corporation (NMMC) has revealed that it is losing Rs150 crore in taxes annually owing to the exemptions and incentives to companies in the information and technology (IT) sector.
Since the abolition of Local Body Tax (LBT), the NMMC is now heavily dependent on the grant from state and the property tax. Members of the standing committee on Thursday demanded an extensive of survey of the 268 IT companies in the city and submission of a report to the state.
NMMC house l eader JD Sutar said, “The government has set norms. However, the civic administration needs to take some action in this matter.”
“Conduct a survey of the companies. IT parks have come up but there are other businesses going on there. There is a need to check on them,” he said.
Standing committee chairperson Netra Shirke ordered that a survey of all the IT companies in the city be conducted. “The survey shall include all the IT companies including Reliance, Mindspace, Wipro and others. If anyone is found flouting the norms, strict action will be taken against them,” said Shirke.
The state has extended several incentives to IT companies to ensure they do business in the state. However, there have been reports of some companies misusing the provision and doing business other than IT.
Deputy municipal commissioner (property tax) Prakash Kulkarni said, “Owing to the exemptions, the NMMC loses Rs150 crore annually.”
Corporator MK Madhvi said, “The incentive proposal should be placed before the NMMC general body. We are already losing out on the LBT and owing to the exemptions to the IT companies, we are suffering more losses.”
Any decision against the companies could affect several large companies in the city.