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subject: Should School Pay Taxes? [print this page]


Should School Pay Taxes?

Mirage Developers a real estate promoter in Hyderabad was part of the recent Income Tax raids in the city. Reason? A child had fallen off the railing outside the classroom which was too low. The child was leaning against the railing and it bent because it was made out of some inferior material. The dealers came under the scrutiny of the media and gradually the real estate developer and finally the tax people because. Some documents were recovered from the school premises that pointed to a scam in which school authorities were said to have been hand in glove with the contractors appointed to build the school infrastructure.

The property had infringed the dimensions allotted by the Hyderabad Development Authority. Things didnt stop with that the dealer for steel rods used an inferior material and lastly, in all these years the school had not paid the land tax. The parents cried foul play and raised slogans, but it was too difficult an issue to handle because there was a number of government officials involved in the scams; those that had contacts with the Principal and used him for their vested interests stopping the tax authorities. The beans were spilled. The school was questioned on Why it did not pay the tax and a report framed by a 3 member committee.

The findings of the committee were recorded in the form of laws violated by the school. The evasion of tax was emphasized on the most because the school had misused the revenue it earned instead of giving it to the government. With 5 branches in the State, Pinnacle Public School had violated a number of norms and was slapped with damage charges to the family of the injured child. On the whole the school landed up paying the childs family with a heavy amount towards hospitalization expenses and due to shortage of funds in the school account, had to face closure charges in court. The school was locked and sealed till it paid the entire required fee.

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by: Harish Kosik




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