Hyderabad: There is a dispute between Telangana and AP over the professional tax collected from employees and professionals. In undivided AP nearly Rs 300 crore was collected from Hyderabad every year as professional tax. Of this, 95 per cent, amounting to nearly Rs 285 crore, was paid to the GHMC. The commercial taxes department, which collects professional tax, was divided between AP and TS on June 2.
From then on, the professional tax deducted from Seemandhra employees and professionals working in Hyderabad are being credited into the account of AP government. In this way, around Rs 174 crore has been credited to AP. The TS government is arguing that the AP government has to pay 95 per cent of the professional tax, amounting to nearly Rs 165 crore, to the GHMC as employees are utilising the services offered by GHMC in Hyderabad. Irrigation minister Mr T. Harish Rao asked, “Why should the TS government bear the entire property tax on government buildings and offices located in the joint capital of Hyderabad, when the AP government has been using half of these premises? The same applies to professional tax. When Seemandhra employees and professionals are utilising the services of GHMC, the AP government is bound to pay 95 per cent of the professional tax to it. We will recover the taxes from AP.”
TS has decided to take up the issue with the governor and the Centre. KCR is expected to take up these issues with the Centre and seek justice for TS.
