Bengaluru, Dec 12: The Karnataka Lingayat Education (KLE) School in Nagarbhavi, southwest Bengaluru, owes the BBMP Rs 1.8 crore in property tax dues since 2008, an internal audit has revealed.
The school, part of the Belagavi-based KLE Group of Institutions, located on Nagarbhavi Ring Road, allegedly made a false declaration under the self-assessment scheme. According to the audit report, the school had declared property of 1.8 lakh sqft along with parking space of 5,000sqft.
However, an inspection conducted by the BBMP’s revenue inspector found the property to be 2,26,083sqft.
The report said the school had to pay Rs 2.2 crore from 2008-09 to 2015-16, but furnished only around Rs 37.7 lakh as service tax.
On February 6, 2016, the BBMP issued a notice to the school with a demand note to pay tax dues, but no payment has been made till now. The audit report recommended collection of around Rs 1.8 crore (from 2008-09 to 2015-16) with interest from the school.
KLE Society chairman Prabhakar Kore, however, said the school was constructed in phases after taking permission. “During the second or third phase of construction, some differences seem to have crept in the declaration. I’ll reply to the civic agency. We’ll also see whether the demand is proper or not. My engineering cell will crosscheck the details. We don’t want to avoid any taxation,” he said.
Kore said unlike elsewhere in the country, educational institutions are charged only service tax, but the BBMP is demanding service tax on commercial rates. “We’ve institutions all over India, but nowhere have we been taxed like this.”
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