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Applicability of property tax by municipal corporation on central psu

(Querist) 27 February 2015 This query is : Resolved 
The Municipal Corporation of Uttar pradesh dtaring levying Propert Tax on Central PSUs on the bais of a jugement of Supreme Court in Food Corporation of India matter. As I understood, FCI is a autonomous body and we are Central PSU . In our case 100% share capital held by Govt. of India. Is it applicable to us? is there any superceeding jugement?
Guest (Expert) 27 February 2015
Mr. Acharya,

Only Government offices, not PSUs under Government, are exempt from property tax. PSUs are like companies/ corporations registered under the companies act. Irrespective of holding pattern, PSUs taxed like like other corporate bodies. If you go through the balance sheet of your own PSU, you will find that it is paying income tax and vat, like other companies. So, as per your perception, why Government is charging income tax or vat on its own corporate body?

So, there is nothing wrong, if the municipal corporation has levied property tax on the FCI.
R.K Nanda (Expert) 27 February 2015
no more to add.
Rajendra K Goyal (Expert) 28 February 2015
Consult local lawyer, local law involved.
T. Kalaiselvan, Advocate (Expert) 03 March 2015
Rightly observed and opined by expert Mr. Dhingra, hope this clears the doubts of author.


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