Solar companies state that the levy isn’t included in the price.
JAIPUR: Solar and wind power programmers are getting notices from country finance division for payment of property tax of Rs 2 per sq mtr levied on these for the very first time effective from April this year. The market, which continues to be occupying the taxation, has requested for some time, even since it’s raising the problem with Rajasthan Renewable Energy Corporation Ltd (RRECL) mentioning that the projects put up were via competitive biddings and also the tax liability wasn’t factored into price evaluation.
RRECL managing director Anil Gupta stated they’ve received representations from the business and are analyzing the tax provisions and benefits available under Rajasthan Industrial Promotion Scheme, 2019 (RIPS-19).
“We’re looking into elements such as when the solar energy programmers could be responsible for the tax, provided that specific exemptions are offered in the RIPS, 2019. After analyzing each of the aspects, we’ll present the business’s situation prior to the finance section through energy division,” Gupta told TOI. Some of the envelop calculation proves that the solar and wind projects would need to shell out about Rs 55 crore annually on account of the property taxation. The research takes into consideration a traditional size of 5 per megawatt for both solar and wind, whose cumulative installed capacity in the country is finished 12000 MW.
The business representatives stated wind and solar needs are parcels of property contrary to other businesses. The bigger capacity, the larger spread from the region, since it’s about catching the solar beams, they explained. “Solar sector differs from other businesses in the meaning it requires huge tracts of property. That is why levying land tax on solar or wind power projects defies all logic,” explained Rajasthan Solar institution in a declaration. The industry body said,”Our associates have received notices in the finance division (Tax Division) to deposit property taxation and its subsequent yearly yield, which was part of the prior input working. Further the nation’s solar policy with not clarified any facet with this property tax, our associates do not know about this. And the solar projects have never been put up under this tax liability”
In a second letter to RRECL, National Solar Energy Federation of India (NSEFI), stated,”Additionally, due to the present situation because of Covid-19 as well as the several limitations on movement and transport currently set up, our manhood business will be not able to mobilize employees or representative or advocate for the hearing, on such short notice. Since, the firms have received the note lately, we in their behalf, hunt decent timeline to allow them collate all of the supporting documents and data with the intention of the hearing”