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Telecom companies liable to pay property tax for tower installation in rural areas, rules Gujarat High Court

May 09, 2017

The Gujarat High Court has turned down the pleas filed by American Tower Corporation (ATC) and Indus Towers demanding that the levying of property tax on mobile towers within village panchayat limits be declared unconstitutional. The companies had moved the court after some village panchayat bodies in Gujarat had issued notice and bills to them to pay property tax for the towers they had installed within village panchayat limits.

The court in its order has stated that a mobile tower is considered as a building and hence property tax was liable to be paid. The court also remarked that the telecom companies had entered into a second round of litigation to avoid payment of tax after they lost a similar case with regard to levying of property tax in the city areas under the Gujarat Provincial Municipal Corporation Act.

 
 

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