Nagpur: Schools in some parts of Maharashtra have expressed shocked over being asked to cough up “non-agricultural tax” by local authorities. Their cause is being taken up by Unaided Schools Forum (USF), an association of over thousand private unaided schools, which says demand for such a tax is illegal.
In a letter to Maharashtra’s revenue minister, USF has asked that a letter be sent to all district officials making them aware that schools are not liable to pay non-agricultural tax.
Subhash Chandra Kedia, honorary secretary of USF said, “Non-agricultural tax is not payable by educational institutions due to exemption u/s 117 of The Maharashtra Land Revenue Code. That section clearly exempts ‘lands used for an educational or a charitable purpose the benefit of which is open to all citizens without distinction of religion, race, caste, place of birth or any of them’.”
Kedia added that even the courts had held a similar view.
“The Bombay High Court, in writ petition No.376 of 1984 also held that educational institutions are exempted from the payment of non-agricultural tax u/s 117 of The Maharashtra Land Revenue Code 1966. Our schools have brought these facts to the notice of the collectors, tehsildars and talathis but they are not considering the same and asking the schools to produce the exemption letter from collector. They are threatening that they will attach the property of the school if non-agricultural tax is not paid,” said Kedia.
In its letter to state revenue minister, USF alleged that local officials are blackmailing schools for this. “We regret to bring to your kind notice that we have never seen such rampant corruption in the revenue department and never heard that these corrupt officers will harass the educational institutions which are the pillars of growth to our nation” the letter stated.
Kedia said if the government fails to take action against local officials, then their association will initial legal action.