TTD owes `39 crore to TMC

World’s second richest organisatison approaches HC reluctant to pay tax dues

Tirupati: It is surprise to note that the richest Hindu religious organisation TTD reluctant to pay the property tax to the Tirupati Municipal Corporation, which is fighting with the TTD, to get the tax amount which was about Rs 39 crore including interest on the tax dues.

Interestingly, though the TTD is paying property tax to the municipal corporation to most of its buildings, it refused to pay the property tax for the three huge complexes Srinivasam, Vishnu Nivasam and Madhavam leading to the tussle between TDD and the civic body which was going on since 2003.

The TTD administering the cash rich Tirumala temple and other shrines in Tirupati and outside, having a good number of own buildings in the pilgrim city of Tirupati including the massive Srinivasam, Vishnu Nivasam, Madhavam complexes, office buildings and employees quarters liable for property tax as per the Municipal Act.

However, the TTD is not ready to pay the property tax to its huge buildings being used as pilgrim amenities complexes, though it is collecting charges from the occupants. The contends that the complexes are to provide service to pilgrims and not commercial, and the amount collected from them for the staying in the rooms is being used to provide facilities like furnishing rooms and AC facilities.

Interestingly, the Chief Minister, too, recently told the temple authorities to pay the tax to the corporation, but it is still reluctant to clear the long pending dues, sources said. But the municipality pointed out that the TTD is collecting amount in whatever name or manner and getting huge revenue from these buildings and has to pay the property tax to help the municipality to take up more development works that would cater to the needs of local residents and also the pilgrims coming to Tirumala.

Corporation revenue officer Sethumadhav said that TTD’s due is Rs 39 crore, including interest Rs 22 crore towards the property tax. The corporation was compelled to collect interest on the property tax, which was pending since 2002-03 financial year for Srinivasam complex, for Madhavam 2007-08 and Vishnu Nivasam 2011-12.

The TTD approached the High Court, which gave a directive to the municipal corporation to decide upon which the commissioner told the TTD to pay the tax as assessed by the revenue department of the corporation, but the TTD again approached the local court.

A senior official of the corporation on condition of anonymity said that it is unfortunate that though TTD is collecting daily charges ranging from Rs 300 to Rs 1500 (AC rooms) for the rooms in the three complexes which is more than one thousand rooms in total and earning revenue of about Rs 5 to Rs 6 crore annually. But shying to pay property tax to the civic body, which is taking care of the sanitation, upkeep of the city frequented by about 70,000 pilgrims daily.

Meanwhile, a tax professional also observed that the municipal corporation is empower to seek payment of property tax for the building from which the TTD is getting revenue and pointed out that TTD is not sparing anything, citing that the TTD collecting parking fee also for the pilgrim vehicles in Srinivasam and also rents from the rooms used as shops on the premises for other offices including government.