QUESTIONNAIRE TO THE COMMISSIONER, CORPORATION OF CHENNAI ...

QUESTIONNAIRE TO THE COMMISSIONER, CORPORATION OF CHENNAI,
CHENNAI – 600 003.

RESOURCE BASE
PROPERTY TAX
1) It is observed that the general revision as on 1.4.2008 has

not been made by Chennai Corporation. How the loss in
revenue owing to non-revision has been compensated?.
2) Has door to door verification of the properties been
carried out? If so, the number of non assessments and
under assessments which have been detected since
2007-08 till now may be given.

Whether the non-assessments detected have been
brought under assessment?

Whether the under assessments detected have been
rectified? If so, what is the quantum of additional revenue
earned during 2007-08 to 2009-10 on this account.
3) After issue of building plan approval, whether periodic
inspection is made by the Planning wing so as to bring
the completed buildings under Property tax net, by the
time the construction is completed?

4) Whether the Planning wing issues completion report in
respect of buildings for which approvals were issued, to
the Revenue wing in order to avoid omission in
assessments?

5) 3rd SFC recommended that tax mapping by using GIS
may be attempted in Chennai and other Municipal
Corporations as in Bangalore Municipal Corporation to
bring out the un-assessed and under-assessed properties
and that attempts may be made to get the GIS software
free of cost from Infosys as was done by Bangalore
Municipal Corporation.

This recommendation was accepted by the
Government.

a) Please state the GIS activities attempted in
your Corporation.

b) Please comment on the advantages and
disadvantages of tax mapping exercise
through GIS.

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6) 3rd SFC has recommended that other than Central Govt.
properties, all other Central public sector undertakings
including BSNL, VSNL, Prasar Bharathi shall be
subjected to property tax as the tax immunity is not
available to them as per Article 285 of the Constitution.
This recommendation was accepted by the Govt.

Whether the said properties in Chennai
Corporation are covered under Property tax?

7) In respect of other Municipal Corporations, the
Commissioner of Municipal Administration has sent
proposal to the Government to amend the Tamil Nadu
District Municipalities Act, 1920 earlier in 2005 itself, so
as to bring self financing educational institutions under
Property tax net. Have you sent similar proposal to the
Government, for Chennai Corporation?

8) Please explain the reforms in Property tax collection
being introduced in your Corporation.
i) Payment of Property Tax through bank ATM/Post
Office/Online.
ii) Incentive to tax payers for advance payment of
Property tax
iii) Penalty for delayed payment.
iv) Any other reform

9) EDUCATION TAX:
i) How much is the balance in this account as on
31.3.2010.
ii) Please explain the activities for which Education Tax
proceeds are utilized by Chennai Corporation.

10) PROFESSION TAX:
i) Whether Profession Tax has been revised on
1.10.2008?
ii) What is the rate adopted for revision?

11) Whether all the traders, self-employed professionals,
court staff, private companies/industries etc. have been
covered under Profession Tax net? If so, the No. of
assessments under each category may be furnished for
the year 2009-10.
ADVERTISEMENT TAX:

12) i) In respect of ULBs, the power to license and levy
Advertisement Tax on hoardings was entrusted to
District Collectors during 2003. The Advertisement
Tax Rules have further been amended in 2008 to

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give effect to the transfer of 100% tax proceeds to
ULBs.

The replies to the Questionnaire received from
the District Collectors reveal that the tax has not
been tapped and no share in advertisement tax
given to ULBs, except in very few Districts.

i) What is the status in Chennai
Corporation?

ii) What would be needed to tap the
advertisement tax potential?

What is the status on the issue of licenses by Corporation
13) for advertisements other than hoardings in Chennai

Corporation area?

14) 3rd SFC has recommended that Section 129A of Chennai
City Municipal Corporation Act, 1919 and other similar
provisions in other Municipal Corporation Acts may be
amplified in such a way that advertisements through lamp
posts, posters on wall, writing on walls including
compound walls and through buses and vehicles are
covered. This recommendation was accepted by the
Government.

What is the status on the issue with reference to
Chennai Corporation?

NON TAX:
TRACK RENT ON CABLE TV:

15) i) In general, the ULBs feel that when the Tamil Nadu
Entertainment Tax Act was amended in 2003 taking
away the tax on cable TV, the levy of track rent on
cable TV was also taken out. The amendment does
not prevent ULBs from the levy of track rent on
cable TV.

Whether the track rent on cable TV is levied
in Chennai City Corporation? If so, the rates
and the date of last revision, if any may be
mentioned.

If yes, how much is collected in the year
2009-10?

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ii) Whether track rent for OFC feeders has been
collected from other fixed line service providers?

If yes, how much is collected in 2009-10?

LIBRARY CESS:

16) Whether the library cess collected by your Corporation
has been transferred fully to Library Department? If not,
the amount pending to be transferred, year wise since
2005-06 may be furnished.

PARKING FEES:

17) i) Third SFC has recommended that multi-storeyed
parking lots may be developed in Chennai
Corporation area, as already formulated by CMDA
to realize more revenue from the source and for
reducing traffic congestion. This recommendation
was accepted by Government.

What is the status in developing multi-
storeyed parking lot in Chennai Corporation
area?

ii) Whether parking lots are developed in business
prone localities and parking fees collected? If so,
furnish the details such as location, fee, total
amount collected, expenditure, etc.

iii) Please explain the functioning of parking meters
commissioned recently? Please furnish a cost
benefit analysis on implementing this scheme.

ASSIGNED REVENUE:

18) Please list out the projects with details of cost, no. of
beneficiaries etc. undertaken under E.T. Compensation
Fund? (year-wise)
What is the methodology of transfer of surcharge on

19) Stamp Duty by Registration Department to Chennai
Corporation?

20) Is there any delay in the adjustment by Registration
Department?

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ACCOUNTABLITY & AUDIT:

21) i) Whether Ward Committees and Area Sabha have
been constituted? If so, the responsibilities of such
fora and their performance may be explained.

FISCAL RESPONSIBILITY:

i) Whether the norm of salary and pension
22) expenditure at 49% of total revenue receipts is

followed by your Corporation?

ii) What is the actual ratio of salary and pension

expenditure in the total revenue receipts after

the implementation of Pay Commission

recommendations? Whether the buoyancy in

the Own/other receipts of ULBs meet such

expenditure?

iii) What is the average ratio of borrowing in own
revenue of your Corporation? Whether the
norm of 4 times of own revenue as a ceiling for
borrowing is followed?

CIVIC NEEDS AND FINANCES:

23) i) What are the present cost norms for operation
and maintenance towards each civic service?
When they were fixed?

ii) 50% of the 12th FC grants to each municipality /
municipal corporation was allocated towards solid
waste management activities during 2005-06 to
2009-10.

a) The specific purposes for which 12th Finance
Commission grants for Solid Waste
Management are utilized may be mentioned.

b) Whether a separate allocation from SFC
devolution is needed towards SWM activities
such as construction of compost yard and for
various activities right from the collection of
garbage to the production of compost? If so,
please explain.

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iii) In how many Zones/Wards, Solid Waste
Management activities are privatized?

iv) What are the advantages and disadvantages in the
privatization of SWM activities in Chennai
Corporation?

v) The PPP initiatives taken under other civic services
like parks, traffic islands, bus shelter, etc. may be
explained.

TOWN AND COUNTRY PLANNING:

i) It is observed from the reply to the questionnaire for
24) Municipal Corporation that no amount has so far

been transferred from the OSR and DC collected by

CMDA in Chennai Corporation area. CMDA has

stated that Chennai Corporation is not remitting the

OSR & Development Charges collected by it to

CMDA. What is the reason for this? Please explain.

ii) Whether 1% of the total revenue of your

Corporation is paid to CMDA so far, for

development purpose?

iii) If not, the quantum of such amount due to CMDA as

on 31.3.2010 and the reasons for non-remittance

may be furnished.

SFC DEVOLUTION:

i) What is your view on the allocation of 3%
25) towards Infrastructure Gap Filling Fund and 2%
towards O&M Gap Filling Fund from out of the
share of each tier of ULBs? Did Chennai
Corporation receive any amount under IGFF and
O&M GFF from 2007-08 to 2009-10? If so,
please list out the projects taken up under IGFF
and O&M GFF in your Corporation.

ii) What are your suggestions on incentivising the
own tax collection in urban local bodies? The
modalities and conditionalities for giving such
incentive, if any may also be furnished.

iii) Taking into account the financial position of
CMWSSB and also the commitments in developing
water supply infrastructure in Chennai Corporation
and other Municipal areas, the CMWSSB is seeking
a hike in the share of SFC devolution proportion to

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the rate of Water Tax and Drainage Tax
components in the total rate of Property Tax.

What is your view on this issue?

GENERAL:

26) i) Any innovative suggestions on improving the
ii) efficiency of ULBs on the augmentation of own
resources.
Computerization and e-governance activities in
Chennai Corporation and the need for further
improvement, if any may be explained.

27) Any other suggestions which you like to highlight.