Pay service tax pending since two decades by Mar 31: MHADA’s ultimatum to tenants

The Mumbai Building Repair and Redevelopment Board (MBRRB), an undertaking of Maharashtra Housing and Area Development Authority (MHADA), has given a final reminder to tenants to pay the service tax arrears by March 31.

There are 104 MHADA layouts comprising over 53 colonies from where MBRRB collects minimum cess in lieu of facilities provided such as maintenance of water pumps, salaries of housekeeping staff, among others. However, these residents have had pending dues for the last 23 years.

In a bid to provide some relief in payment of overdue taxes, the MBRRB has allowed to clear the dues in ten installments over a period of five years, with a gap of six months between each installment. It also waived off the surplus interest on the overdue amount under Abhay Yojna Scheme started in 2021 and first installment was in September last year. Now the second installment due date is March 31. Therefore, residents have been reminded to make the payments to avoid 8 per cent extra interest charges.

According to the MHADA, so far Rs 2.49 crore has been collected as pending service tax dues. In fact, a special team for collection of unpaid service tax has also been formed, which even works during weekends. The MBRRB, which takes care of cess and MHADA’s old buildings, is facing acute shortage of funds.

The officials believe, "If the unpaid charges are received then it can be utilised to repair these buildings wherever necessary and needed." As an annual safety exercise, the MBRRB has carried out surveys of old buildings so as to vacate the dilapidated structures before monsoon. The residents of such building will be shifted to alternative accommodation.

Residents have been reminded to clear dues to avoid 8% interest