Thursday, November 11, 2010

Pune IT companies to pay taxes as per residential rates


Infotech companies in Pune have something to cheer about as they will continued to be charged property tax as per residential rates. Although the IT companies were being charged taxes as per residential rates until last year, the Pune Municipal Corporation general body (GB) recently passed a resolution stating that the taxes will be charged as per commercial rates from 2010-11. Also, new IT companies were to be assessed as per commercial rates.

However, the state government has issued a clarification to the PMC, saying that as per the state policy, Pune, too, will have to give exemption to IT companies and continue collecting taxes as per residential rates.

Explaining the development, Vilas Kanade, head of tax collection and assessment department, said that as per the state IT policy framed in 2003, exemption was given to IT companies in Pune until September 2009. “However, a new policy was framed by the state, which is applicable up to 2013. This policy, too, had the same guidelines and exemption, but Pune’s name was not specifically mentioned in the policy, therefore, there was a confusion whether it was applicable to IT companies in Pune or not,” Kanade said.

A letter was sent to the state government by the department, seeking clarification in the matter and, in the meantime, the GB passed a resolution charging taxes as per commercial rates. “We received the state’s letter recently and there will no problem in collecting taxes as per existing rates as its just eight days since the new financial year has started and the bills have not been dispatched. Also, there have been no new assessments,” Kanade said.

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