IT appears that officials of the Pune Municipal Corporation&rsquo;s (PMC) tax department cannot distinguish between Non-Governmental Organisations (NGOs) and commercial establishments. It has been learnt that the newly constructed hospital building of the Family Planning Association of India (FPAI) at Ved Bhavan near Chandani Chowk on Paud Road was taxed exorbitantly by the PMC. <img alt="" src="http://images.mid-day.com/2012/dec/FAPI.jpg" style="width: 500px; height: 328px;" /> Big price? The FPAI had paid Rs 11.51 lakh as tax under various heads to the civic body. However, the NGO will now have to pay additional Rs 1.25 lakh as annual property tax, levied by the PMC on commercial establishments In order to run the hospital, the FPAI paid tax worth Rs 11.51 lakh tax under various heads to the civic body. But the NGO will now have to pay additional Rs 1.25 lakh as annual property tax, levied by the PMC on commercial establishments. Operating as a NGO since 1947, the FPAI is working in the field of sexual and reproductive health, including family planning and child health, and HIV/AIDS for poor and needy persons. FPAI performs legal Medical Termination of Pregnancy (MTP) and conducts tubectomy for free. FPAI president for Pune, Dr Sanjay Gavhane, said, &ldquo;We are providing free of cost services to the poorest of poor in the district, especially in Mulshi and Maval taluka. The Ved Bhawan Hospital has a staff of 10 with a facility of an operation theatre, constructed on a total area of 6,000 square feet.&rdquo; He added, &ldquo;Instead of waiving off taxes, the PMC compelled us to pay them under development charges, road NOC, water supply NOC, drainage NOC and fire NOC. In addition, they had also levied an annual tax of Rs 1.25 lakh as property tax as per commercial rates.&rdquo; He added despite various reminders and several personal visits to the PMC office, the issue remains unresolved. &ldquo;The PMC authorities know rules and norms for NGO working in the field of health and family planning. It is strange that we get funding from foreign-based organisation and pay our people in the name of commercial taxes,&rdquo; Gavhane said. Commenting on the issue, Shyamala Desai, FPAI secretary for Pune, said it is strange of the PMC to charge them property tax as the unit is yet to operate formally. &ldquo;To ensure that our hospital unit starts as early as possible, we paid the PMC Rs 11.51 lakh without any delay. We are still uncertain whether to pay taxes as per commercial or non-commercial rate to the civic body,&rdquo; Desai said. <div id="cke_pastebin"> The other side</div> <div id="cke_pastebin"> PMC&rsquo;s Tax Department Head Hemant Nikam said, &ldquo;We are charging commercial rate to FPAI as it has been given the label of a commercial hospital in its basic assessment by the PMC. They should have first change its tax title to &lsquo;non-commercial&rsquo; organisation by getting the necessary paperwork done. We will charge accordingly if they furnish relevant papers.&rdquo; u00a0Vivek Kharwadkar, additional city engineer, said, &ldquo;I am aware of the issue and we assured the FPAI authorities of reassessing the construction and then giving our final certificate on the structure&rsquo;s non-commercial merit.&rdquo;u00a0</div>

Despite operating as Non-Governmental Organisation since 1947, civic body's levies tax on Family Planning Association of India's new medical facility as per commercial rate

PMC slaps 65-yr-old NGO with hefty property tax

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Home / News / India News / Article / PMC slaps 65-yr-old NGO with hefty property tax

PMC slaps 65-yr-old NGO with hefty property tax

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