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Taxation

KMC set to widen property tax ambit

Wednesday, 04 September 2013 12:13 administrator
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The Times of India          04.09.2013

KMC set to widen property tax ambit

KOLKATA: Get ready to pay enhanced property tax as the KMC is set to send notices to taxpayers across the city for General Revaluation (GR).

After sending Property Information Form (PIF) to property owners across the 18 wards of the city, the civic body now wants to mop up revenue by sending GR notices to owners of those properties whose tax amount have remained stagnant for six years or more.

In some wards across the city, the GR, which is done once in six years, has been held up for the past 12 years, conceded a KMC assessment department official. "We are calculating the number of households based on the GR last done on these properties. We will send GR notices accordingly," said the official.

According to the official, though a section of property owners have responded "wholeheartedly" to the PIF scheme, most of them have remained silent the on nature of property.

"We have got useful information from a section of property owners from 18 wards where we had sent PIF. We hope to augment revenue from commercial properties in a few wards based on the feedback from the owners. At the same time, we have noticed that most taxpayers in these wards have not responded to our appeal of self-assessment," the official added.

According to sources in the department, only 10% owners from the 18 wards have sent the feedback based on the PIF sent to them two months ago. However, a section of commercial property owners have responded from areas such as Ballygunge, Gariahat, Rashbehari Avenue, Dhakuria and Jodhpur Park, among other areas. "We will benefit from the information as our revenue will get a boost because of the self-assessment by the owners of these commercial properties," said Bhaskar Ghosh, the chief manager (revenue).

For the rest who have not responded to the PIF, the department will send inspectors to take stock of the present status of the properties. "We had sent PIF to owners in 18 wards, especially in areas located along the Bypass, with an objective to bring unassessd properties into the tax network. As we have received lukewarm response from these wards, we will now send our inspectors to these areas and take stock of unassessed properties," Ghosh said.

However, the opposition leaders in the KMC felt the civic body should continue with the PIF. "If a system is withdrawn within three months of its introduction, what is its use?" wondered Rupa Bagchi, the leader of the opposition at the KMC. 

 

Town planning dept to collect LBT from builders

Monday, 02 September 2013 11:50 administrator
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The Times of India              02.09.2013

Town planning dept to collect LBT from builders

NASHIK: The local body tax (LBT) department of the Nashik Municipal Corporation (NMC) has asked the town planning department to start collecting tax from builders and developers in the city.

As per the rules of the LBT, Rs 100 per square metre is charged for buildings up to four floors, Rs 150 per square metre for buildings up to seven floors and Rs 200 per square metre for buildings having more than seven floors.

The LBT is to be charged on the total constructed areas of the building projects that will also include balcony, stilt floor, basement, parking and compound. A circular mentioning all these guidelines had been sent to the town planning department by the LBT department last week.

"The builders will have to pay 50% of the total LBT while getting their building plans approved and the rest of the 50% will have to be paid while getting the building completion certificates," said deputy municipal commissioner (LBT) Haribhau Phadol, while speaking to TOI.

Officials of the town planning department have confirmed the receipt of the circular and said that the builders and developers will be informed immediately and the tax will be collected as per the rules mentioned in the circular.

The LBT came into effect from May 22 replacing the octroi collection. Since then, till August 31, the NMC has collected a total of Rs 112.59 crore through LBT. In August alone, the NMC collected LBT amounting to Rs 50.61 crore.

The civic body has also taken action against 72 traders and businessmen for tax evasion and has collected a fine of Rs 6.21 lakh for not registering for the LBT and submitting fake bills.

 

One percent sales tax applicable for non-agri land

Tuesday, 27 August 2013 10:03 administrator
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The New Indian Express             27.08.2013

One percent sales tax applicable for non-agri land

The Kerala High Court on Monday held that when land is handed over to the government, deduction of tax at 1 per cent from the sale amount will be applicable if the property is not an agriculture land and the amount comes to Rs 50 lakh or more.

Justice V Chidambaresh passed the order while considering a petition filed by M C Thomas of Kalamassery seeking a directive to the government to disburse the entire sale consideration for the land taken for Kochi Metro Rail without deducting any amount as tax.

The petitioner had agreed to transfer his 3.98 cents in Aluva municipality for the Metro Rail Project. A district-level purchase committee constituted for the purpose had negotiated with the petitioner, in regard to the price of the property. Later, the sale consideration was fixed at the rate of Rs 17 lakh.

The petitioner had handed over the consent letter and original documents, including title deeds.

“When there is no compulsory acquisition of land, Section 194LA of Income Tax Act is not applicable and they are not bound to deduct any amount as Tax Deducted at Source (TDS),” the petitioner submitted.

The Court pointed out that Section 194LA of the Act has been introduced, in effect from June 1, in order to have a mechanism for reporting transactions in the real estate sector and collect tax at the earliest point of time.

It provides that from every transferee, at the time of making a payment as sale consideration for transfer of immovable property to a resident transferor, tax should be deducted.

This will be applicable only if the property is not agricultural land and the total sale consideration is `50 lakhs or more.

The petitioner’s land is situated within the Aluva Municipality.

“If the land is situated within the limits of a municipality or a municipal corporation, it is not treated as an agricultural land, irrespective of the nature of the land,” the court held.

The Court also directed the District Collector to disburse the sale consideration amount to the petitioner, after deducting income tax at 1 per cent of the sum.

 
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