Company tax in the city has been increased from a maximum of Rs. 1,000 to Rs. 30,000.
On Monday, the Chennai Corporation council passed a resolution to this effect. Of the 34,260 companies identified in the 15 zones of the city, 5,196 companies with a paid-up capital of over Rs. 50 lakh will have to pay the maximum company tax of Rs. 30,000 every six months.
At least 16,459 companies in the city, which are in the paid up capital range of Rs. 1,00,000 to Rs. 1,99,999, will have to pay a revised tax of Rs. 1,000.
Only 2,304 companies have a paid-up capital of less than Rs.1 lakh. These companies will have to pay Rs. 500 for a six-month period.
At present, companies with a paid-up capital of more than Rs.1 lakh, pay Rs. 100 as company tax. Any company with a paid-up capital of more than Rs.10 lakh pays Rs.1,000, which was the maximum company tax levied until now.
According to officials of the Corporation’s Revenue Department, under the 175 sq km area of the civic body’s earlier jurisdiction, there were 12,417 limited and private limited companies.
With the recent expansion of the city limits, the civic body has now created a comprehensive database of companies functioning in the 426 sq km area of its current jurisdiction.
A few months ago, the Corporation identified over 25,000 companies under the city limits that were not paying company tax.
A chunk of these companies were in the newly-merged zones of Ambattur, Tiruvottiyur, Manali, Madhavaram, Valasaravakkam, Perungudi and Sholinganallur.
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.
The civic body council, a few months ago, approved old city rates for company tax in the newly-merged areas under its limits.
Keywords: company tax increase