The Chennai Corporation is all set to direct companies in added areas in the city to register for payment of company tax.
The Corporation recently invited objections from companies on the inclusion of added areas in the company tax net. Since it did not receive any objection within the stipulated time period, it will now send letters to the companies in a few days and is likely to begin collection after approval from the government is received.
Last year, the civic body identified over 25,000 companies that are not paying company tax. At present, 13,000 companies pay company tax.
The civic body has also instructed revenue department officials to segregate data collected from other government departments to identify companies that fail to pay company tax. The Corporation will also identify employees in these companies who do not currently pay professional tax.
A chunk of companies identified are in Ambattur, Tiruvottiyur, Manali, Madhavaram, Valasaravakkam, Perungudi and Sholinganallur zones.
The civic body council, a few months ago, approved rates for company tax in such areas.
Under section 110 of the Chennai City Municipal Corporation Act, all private limited companies and limited companies which transact business within the city, in any half year for not less than 60 days in aggregate, should pay company tax. This tax is based on the paid-up capital of the company.
