This story is from April 22, 2016

LDA parking fee to rise by 40-50 %

LDA-operated parking lots will see a significant hike from May onwards with the authorities deciding to impose 15% service tax on contractors applying for the tender.
LDA parking fee to rise by 40-50 %

Lucknow: LDA-operated parking lots will see a significant hike from May onwards with the authorities deciding to impose 15% service tax on contractors applying for the tender. Officials said contractors will eventually pass the financial burden of service tax onto the end-user resulting in fee hike by almost 40- 50 % on both car and bike parking.
Normally, LDA contractors charge Rs 20 for cars and Rs 10 for two-wheelers for every 4-5 hours.
The time period may vary depending on the locality and space of parking. The LDA official in-charge of parking contracts said, "The contractors will increase their parking fee to meet the increased cost of tender but without letting the consumers directly know about it. This may lead to a hike in parking fee of cars to almost Rs 30-40 and of two-wheelers to Rs 20."
A parking tender value may vary from Rs 85,000 to Rs 42 lakh per annum. Hence, the service tax amount would differ for every parking space. As an annual practice, LDA floats tender for its parking spaces every financial year for the period of April 1-March 31. It is from this year that LDA has decided to add 'service tax' component in the contract value.
LDA operates about 18 parking facilities across different localities. It has floated tender for all its parking facilities this month and has received about 8-9 tenders.
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