Uniform rate of licence fee for factory owners: MCD

“The licence can be renewed within 30 days from the date of expiry without any penalty and thereafter a penalty at the rate of 5% per month will be charged,” informed MCD official.
The new headquarters of unified Delhi Municipal Corporation. (Photo| Special Arrangement)
The new headquarters of unified Delhi Municipal Corporation. (Photo| Special Arrangement)

NEW DELHI: Bringing new changes to the tax system, the Municipal Corporation of Delhi (MCD) has implemented uniform rates of licenses fee for permitting new factory licenses and renewal of factory and household licenses. The new rates came into effect on July 5.

Factory owners now have to apply and pay for the factory licence and its renewal in accordance with the amended rates. After the policy’s adoption, the factory licensing fees will automatically increase by 15 per cent every three years.

In the confirming area and local commercial registration fee (one time) and license fee (one time) for obtaining a new factory license, category and fee have been fixed according to the power load of the factory. The process is similar to the factory at the household.

The application and processing fee for a factory license is `1,000, while the renewal of the household factory license is `1,000 (first year), `2,000 (second year) and `3,000 (third year). In the confirming and local area, the registration fee (one time) and license fee (one time) are `2,000 to `50,000. While for household factories it is `2,000 to`4,000.

“The licence can be renewed within 30 days from the date of expiry without any penalty and thereafter a penalty at the rate of 5% per month will be charged,” informed MCD official.

Ashish Garg, president of Narela Industrial Association said, “The MCD instead of increasing the factory license every three years, should do it at one go during the registration time.” He also complained that the new rule will bring more corruption in the system, which indirectly brings headaches for factory owners.

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