Get PAN or shell out 20% tax, Residents Welfare Associations told in Chandigarh

Sandeep Rana
Tribune News Service
Chandigarh, July 9

The local Municipal Corporation (MC) has asked Residents Welfare Associations (RWAs) maintaining neighbourhood parks and public toilets to get PAN (Permanent Account Number) or else be ready to shell out 20 per cent tax on the maintenance cost.

1,809 neighbourhood parks in city

There are 1,809 neighbourhood parks in Chandigarh. Of these, 760 are being maintained by 60 RWAs. They are paid Rs2.48 per sq metre.

According to the MC, it is mandatory for the RWAs to get PAN to pay the TDS. If they get PAN, they have to pay 2 per cent on the maintenance cost, which is provided by the corporation. If they do not get it, they will be considered as individuals and will be liable to pay 20 per cent tax.

“We have directed the RWAs to do the needful and many have got PAN. If they do not obtain it, they will have to pay 20 per cent tax on the maintenance cost as per the norms,” Krishan Pal Singh, Superintending Engineer (Horticulture and Electrical), told Chandigarh Tribune.

There are 1,809 neighbourhood parks in Chandigarh. Of these, 760 are being maintained by 60 RWAs. They are paid Rs2.48 per sq metre.

Though many RWAs have got PAN, some are not forthcoming on the move. “Introducing the TDS will make things complicated for the RWAs. Their payment will also reduce. The RWAs should be treated as contractors; this is only the reimbursement for the maintenance cost,” Hitesh Puri, chairman, Chandigarh Residents Association Welfare Federation.

Kuldeep Singh Gill, president, Bright RWA, Sector 21-B, said, “Once we start paying the TDS, we will also have to file returns, and in case there are objections, we will have to hire a lawyer as well. It is going to be too much of a hassle for just maintenance. The RWAs will surrender the parks if the TDS is imposed on us.”

He said the corporation was not paying them the full amount at the rate of Rs2.48 per sq metre on frivolous grounds such as “hegdes not put up”.

“I maintain 12 parks. The maintenance cost comes out to Rs49, 000 a month, but the corporation pays only Rs40,000. It comes out to Rs2 per sq metre. When there is a toe wall, where is the need for hedges,” he asked.

The Resident Welafre Associations have been demanding a raise in the maintenance cost, but the civic body maintains that it is on a par with what is being paid in Mohali and Panchkula.