A municipality can collect tax on advertisement hoardings in the private properties and consequently can collect any license fees in garb of tax for the advertisement hoardings in the private properties even after implementation of GST
License Fee on Advertising Hoardings by Municipal Corporation —– The petitioner challenged the Resolution no.928 dated 28th November 2018 and the Resolution dated 24th December 2018 passed by the Standing Committee of the respondent–Ahmedabad Municipal Corporation approving the revised rates of license fees for the advertising hoardings in private properties. The petitioner submitted that after introduction of the GST, the respondent Corporation cannot collect any tax on advertisement hoardings in the private properties and cannot collect any license fees in garb of tax for the advertisement hoardings in the private properties. This Court granted interim relief by staying the implementation of the Resolutions passed by the AMC on the condition that the petitioners continue paying the license fees applicable prior to the said Resolutions without prejudice to their rights or contentions. The court observed that that the license fee levied for granting license for placing advertising hoardings in private property is “fee” and not “tax”. The levy of fees falls within the powers prescribed under Sub-section-2 of Section 386 of the GPMC Act subject to control of the State Government.
Held that:- The Hon’ble High Court rejected the petition subject to the right of the petitioners to challenge the quantum of license fees before the State Government as per the provisions of the GPMC Act in accordance with law.
A municipality can collect tax on advertisement hoardings in the private properties and consequently can collect any license fees in garb of tax for the advertisement hoardings in the private properties even after implementation of GST
License Fee on Advertising Hoardings by Municipal Corporation —– The petitioner challenged the Resolution no.928 dated 28th November 2018 and the Resolution dated 24th December 2018 passed by the Standing Committee of the respondent–Ahmedabad Municipal Corporation approving the revised rates of license fees for the advertising hoardings in private properties. The petitioner submitted that after introduction of the GST, the respondent Corporation cannot collect any tax on advertisement hoardings in the private properties and cannot collect any license fees in garb of tax for the advertisement hoardings in the private properties. This Court granted interim relief by staying the implementation of the Resolutions passed by the AMC on the condition that the petitioners continue paying the license fees applicable prior to the said Resolutions without prejudice to their rights or contentions. The court observed that that the license fee levied for granting license for placing advertising hoardings in private property is “fee” and not “tax”. The levy of fees falls within the powers prescribed under Sub-section-2 of Section 386 of the GPMC Act subject to control of the State Government.
Held that:- The Hon’ble High Court rejected the petition subject to the right of the petitioners to challenge the quantum of license fees before the State Government as per the provisions of the GPMC Act in accordance with law.