Jaipur: The Udaipur Municipal Corporation’s (UMC) notices to IT industries located in RIICO industrial areas, directing them to deposit urban development (UD) tax, triggered concerns over double taxation.Industry representatives pointed out that units operating in RIICO industrial areas already paid service charges to the Rajasthan State Industrial Development and Investment Corporation (RIICO) for civic amenities and infrastructure. The additional demand for UD tax by the corporation, they said, amounted to double taxation, which was not applicable under a 2010 notification issued by the department of local bodies. The 2010 notification by the state local self govt clearly stated that industries situated in RIICO-developed industrial areas, where service charges were paid to RIICO, should not be subjected to UD tax by local bodies. “Despite this, Nagar Nigam warned of sealing industrial units if the UD tax was not deposited within the stipulated time,” said the promoter of an IT company. In fact, he said, the Nagar Nigam did not recognise IT as an industry. “The corporation treats IT as commercial activity despite the govt of Rajasthan and the Union govt recognising the sector as industry,” he said. The move caused concern among the IT industry in Udaipur, which employed around 10,000 workers directly and indirectly. Industry associations feared that coercive action such as sealing of units could disrupt operations, lead to job losses, and adversely affect Udaipur’s reputation as an emerging IT hub. Industry bodies urged the corporation to immediately withdraw the notices and resolve the issue in line with the existing govt notification. They also called upon the state govt and the department of local bodies to intervene and provide clarity to prevent harassment of industries.
