Tax Dispute Escalates Between Sanand GIDC Industries and Gram Panchayats

Ahmedabad: A tax dispute between industries in the Sanand GIDC estates and local gram panchayats has intensified, with panchayats allegedly refusing to accept professional tax payments from companies that have not cleared their property tax dues.

The move has created compliance issues for industries, which argue that professional tax and property tax are separate levies and should not be linked.

Industry representatives said several companies located near villages such as Bol, Charal, and Hirapur have withheld property tax payments, claiming that civic infrastructure such as roads, drainage, and streetlights is provided by GIDC rather than the gram panchayats. They contend that paying property tax to the panchayats amounts to double taxation.

In a representation to the Ahmedabad Collector, the Sanand Industries Association (SIA) alleged that gram panchayats are demanding property tax despite not providing civic services. The association also claimed that panchayats have stopped accepting professional tax from companies, affecting statutory compliance and tax return filings.

The association stated that industries already pay service charges to GIDC, and levying property tax in addition to those charges amounts to double taxation. It added that the matter is currently pending before a court. DeshGujarat