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19.06.2018 Subject: Clarification on TDS Deductions on EDC Payments.

Please refer to the matter cited as subject above.

1. Section 2(g) of the Haryana Development and Regulation of Urban Areas Act, 1975 defines that external development works (hereinafter referred as EDW) shall includes any or all infrastructure development works like water supply, sewerage, drains, provisions of treatment and disposal of sewage, sullage and storm water, roads, electrical works, solid complex, fire stations, grid sub-stations etc and/or any other work which the Director may specify to be executed in the periphery of or outside colony/area for the benefit of the colony/area.

'External Development works include water supply. sewerage, drains. necessary provisions of treatment and disposal of sewage, sullage and storm water, roads, electrical works. solid waste management and disposal slaughter houses, colleges, hospitals, stadium/sports complex. fire stations grid sub-stations etc and any other work which the directory may specify to the executed in the periphery of or outside colony/area for the benefit of the colony/area' 4.2.2 HUDA charges EDC as per section 3(3)(a)(ii) of HDRUA, which reads as under:

EDC would never be returnable and would never be returned because it is a consideration paid by EDW users.

4. 3.3 EDC is worked out for a particular urban estate on the basis of the cost of external development services such as master water supply. Master Sewage, Master Roaos, Master Storm Water Drainage, Master Horticulture. Master Community building and other services is determined on the basis of a price index of a particular year in respect of a particular urban estate. The cost is determined by the Engineering Wing of HUDA keeping in view the requirement of development plan of an urban estate. EDC is charged from sectors floated by HUDA or the license granted by the Town & Country Planning Department to the developers. To say that there is no element of profit in EDC because EDC varies depending upon requirement of development in each urban estate. Therefore it is in the nature of liabilities is incorrect because the payers of EDC are allowed to use EDWs for payment of fees worked out On the basis of investments in EDWs. EDC is charged from colonizers for using the developed urban infrastructure in urban estates wherein they are allowed to establish their commercial set ups The EDC IS a usar fee charged by HUDA from colonizers.

(viii) plans as required under sub-clause (vii) indicating, in addition the position of sewers, storm water channels, water supply and any other public health services;

(ix) detailed specifications and designs of road works shown under sub-clause (vii) and estimated costs thereof;

(x) detailed specifications and designs of sewerage, storm, water and water supply schemes with estimated costs of each;