Surat to collect tax arrears on mobile towers after SC ruling

The Supreme Court verdict allowing tax collections on mobile towers installed within municipal corporation area has paved way for the Surat Municipal Corporation (SMC) to collect arrears of Rs80 crore from different mobile service providers. It will now also be able to make assessment of such towers under property tax and would be able to get a regular income of Rs20 crore per year.

Following area-based evaluation system, SMC used to make assessment of mobile towers considering them liable to pay property tax.

However, different mobile tower companies had approached the court against this. The high court in an April 2013 order had said that local bodies cannot collect taxes on mobile towers and it must also refund the taxes collected so far.

The SMC appealed against the high court order in the Supreme Court. After four years of hearing, the apex court on Friday accepted the petition of SMC. It concluded that municipal bodies can make an assessment and collect the taxes for mobile towers.

"Now, we will be able to claim Rs80 crore as arrears and would also be earning about Rs20 crore per year as taxes from mobile tower companies," said Sharad Mehta, deputy commissioner finance, SMC.