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Taxation

Name transfer: linking tax with property value opposed

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The Hindu                          18.03.2013

Name transfer: linking tax with property value opposed

Staff Reporter 

Coimbatore Consumer Cause has written to the Coimbatore Corporation seeking to reconsider its decision to levy tax on name transfer of property. The Corporation in its 2013-14 budget, presented on Thursday, had proposed to levy 0.1 per cent of the property or Rs. 200 – whichever was higher as tax whenever the buyer of the property applied for name transfer.

The Corporation had estimated that it would receive around Rs. 2 crore in revenue.

In response, CCC secretary K. Kathirmathiyon had said that while CCC welcomed the decision to levy tax on name transfer it was opposed to linking the tax with the property value. It had suggested to the Corporation that it could instead collect a nominal fee of Rs. 100 to Rs. 200 as there was nothing wrong in charging one for offering a service.

But, collection of tax in proportion to the value of the property was not appreciable.

It had pointed out that for transfer of ownership for a vehicle a fee was charged which had nothing to do with the value of the vehicle. In patta name transfer, a fee was charged, which, again had nothing to do with the value of the property.

The CCC had also said that even if name transfer was not effected to, the property legally belonged to the buyer. It had also cited the name transfer for electricity connection to buttress its argument.

It had said that if the Corporation were to go ahead and levy the tax, it would set a bad precedent.

 

What's in a name? A new tax

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The Times of India                      16.03.2013

What's in a name? A new tax

COIMBATORE: In an attempt to augment its revenue, the city municipal corporation in the budget has proposed a name transfer fee. The transfer fee will be applicable only to property tax assessment of buildings and vacant lands in the corporation limits which undergo a change of ownership.

At the moment, the corporation does not have any additional fee for change of ownership except the nominal application form fee which has to be submitted after filling up the details of the new owner after completing the formalities at the registration department. "We have proposed it in our budget as an option to increase the revenue of the local body. The new budget has also not included any fresh tax and the name transfer fee will not be a huge amount," said S Sivarasu, deputy commissioner, Coimbatore Municipal Corporation.

According to the corporation, there were around Rs 4,00,000 property tax assessment and vacant land assessment in the corporation limits. They have also identified that a minimum additional revenue of Rs 2 crore could be generated through the name transfer fee which as per the budget announcement would be Rs 200 or 0.1 per cent of the property value or whichever is higher at the time of application. However, a few city residents claimed that with the government hiking the registration fee recently, the corporation's additional fee will be an added burden. They also raised apprehension about the possibility of the corporation introducing the fee at the moment and later hiking it as per their revenue requirements. "Though they have not openly taxed the public in the budget, the corporation could have avoided the name transfer fee," said S Kanagasundaram, former president, Association of Licensed Building Surveyors.

However, sources in corporation indicated that the corporation might make some modifications in the name transfer fee rates at the council meeting in the coming week. The civic body might reframe the name transfer fee tariff and charge 0.05% for property whose value is below Rs 50 lakh and 0.01% for those with a higher market rate. The corporation has announced that it will raise the rent for its commercial complexes. It had already increased the rent for those complexes that completed an allotment period of nine years.
Last Updated on Saturday, 16 March 2013 08:23
 

Tax collection tops corporation's agenda, while mosquito menace takes a backseat

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The Times of India                        14.03.2013 

Tax collection tops corporation's agenda, while mosquito menace takes a backseat

COIMBATORE: The untimely appearance of a corporation vehicle with a fogging machine does not necessarily mean the local body is going all out to control the mosquito menace. These corporation vehicles are working extra time only to encourage the public to pay property dues on time.

On Tuesday, one of these vehicles fitted with loudspeakers negotiated every nook and corner in Peelamedu area during the day making announcements. "I have never seen this vehicle in our area to carry out fogging activities. But when it comes to revenue generation the civic body seems to go the extra mile," said R Raveendran of Residents Awareness Association of Coimbatore ( RAAC).

The corporation has five vehicles mounted with fogging machines for carrying out mosquito control activities in the five zones. These vehicles are fitted with loudspeakers and they traverse each zone reminding the public to pay their property tax dues to avoid penalties. "This does not affect mosquito control measures as fogging is usually carried out only in the evening," a sanitary inspector said. At the end of every financial year the corporation employs all available vehicles to reach the public, he added.

Though officials claimed the fogging vehicles would start fogging activities by 5 pm in their respective zones, residents challenge this claim. They allege that mosquito control activities have taken a backseat as the corporation utilizes these vehicles primarily to aid revenue generation rather than conduct fogging activities. To begin with, each zone has 20 wards and 1 vehicle is far from adequate to complete activities in all 20 wards.

Informed sources reveal that the corporation is doing whatever it can to retain the best corporation award received from the state government last year, primarily for achieving 87 % tax collections in 2011-12, the highest among urban local bodies in Tamil Nadu. As of Wednesday, the corporation has collected only 78 % tax dues while the target for 2012-13 financial year is set at 90 %. "No one in the state has achieved 90 % tax collections and with more than 15 days remaining for the end of this financial year we hope to achieve the target comfortably," said a senior official.
Last Updated on Thursday, 14 March 2013 11:54
 


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