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Taxation

No tax relief for green bldgs?

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The Times of India           25.10.2010

No tax relief for green bldgs?

MUMBAI: Green buildings or environment-friendly buildings do not find a mention in BMC's draft property tax rules.

In 2007, the BMC had appointed the United States Agency for International Aid ( USAID), the International Institute for Energy Conservation (IIEC) and the Science and Technology Park, Pune, to formulate the technical criteria and a plan for implementing the eco-housing programme. BMC had even announced its intention to give a 50% rebate on property tax for buildings and individual houses that were environment-friendly.

Increasingly, builders in the city are offering constructions that are termed Green Buildings and even certified as such by the Leadership in Energy and Environmental Design ( LEED) a globally recognized green building certification system. Green buildings are structures that minimize the damage to the environment through the use of solar energy, natural lighting, water recycling, rain-water harvesting, local and natural construction materials and generating minimum garbage etc.

However, the draft property rules go so far as to even include the area of the structure for an effluent treatment plant while arriving at the capital value of a building.It is now mandatory for all new constructions with a plot size of more than 2,000 sq m to have a rainwater harvesting system and for over 20,000 sq m it is mandatory to install an effluent treatment plant for treating 20% of the sewage generated by the residents.

"The BMC has the opportunity to promote eco-housing by providing weightage to such buildings in its property tax rules. At least it will incentivize citizens to implement some environment-friendly," said sources.

S S Shinde, joint municipal commissioner, in charge of assessment and collection, however, said the property tax rules were business rules. "Eco-housing programme is a policy. We can subsequently issue circulars announcing property tax rebates for such buildings. But it is not possible to include it in the property tax rules since it is all about computing capital value," he said.

Citizens can send in their objections and suggestions on the draft property tax rules before November 16.

Last Updated on Monday, 25 October 2010 10:33
 

‘No property tax on pvt schools’

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Indian Express   25.10.2010

‘No property tax on pvt schools’

Express News Service Tags : Punjab and Haryana High Court, Justice Vinod Kumar Sharma Posted: Mon Oct 25 2010, 01:36 hrs

Chandigarh:  In a major blow to the UT Administration, the Punjab and Haryana High Court has quashed the property tax imposed on all private schools in Chandigarh. In his detailed judgment, Justice Vinod Kumar Sharma has held that “the notification fixing property tax on institutional lands is quashed being beyond the powers of the Administrator, and consequently, the notices issued demanding tax from the petitioners are also ordered to be quashed as the UT Administrator had no jurisdiction to frame by-laws”.

HC has further held that “it is the Municipal Corporation, which can impose tax on the lands and buildings” and not the Administrator and that in the “present case there is no tax imposed by the Municipal Corporation, Chandigarh”. The judgment further reads: “Powers to frame by-laws can be exercised by the MC alone and not by the government/Administrator. The government/Administrator can only modify and publish the by-laws so framed, but the notification is required to record that the by-laws are framed by the MC. While fixing the rate of tax it is not open to the government/Administrator to include the properties/lands, which have not been taxed by the Municipal Corporation.”

However, it has been made clear that the resolution passed by the MC on January 29, 2003 as also the fixing of rate of properties covered under the resolution of the MC, Chandigarh, have been upheld by the High Court. The directions have been passed over a bunch of 23 petitions filed by various private schools in Chandigarh challenging the imposition of property tax by the Administrator. The counsel appearing for private schools had submitted that the Administration, by illegally inserting the word “institution” by way of advertisements in newspapers, had imposed the Municipal (Land Building) tax on the private schools since 2004. The petitioners contended that the word “institution” has not been defined in the Municipal Corporation Act and that it was the Corporation only, which was entitled to impose tax and not the Administrator who did so. 

On the other hand, senior standing counsel for UT Administration Sanjay Kaushal had submitted that while discussing the word “commercial”, institutions like the petitioners were under consideration by the Municipal Corporation. Finding force in the submissions of the petitioners, Justice Sharma held: “In case the Administrator was not satisfied with the resolution, the procedure was required to be followed, directing the Municipal Corporation, Chandigarh to impose tax on institutions/institution lands. Having not done so, it was not open to impose property tax by framing by-laws as these are not source of imposition of tax. By-laws can be framed to regulate the procedure for imposition of tax, which cannot override the basic resolution passed by the MC.”

Last Updated on Monday, 25 October 2010 10:31
 

MCD rejects proposal for village property tax

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The Pioneer  25.10.2010

MCD rejects proposal for village property tax

Parvaiz Sultan | New Delhi

People living in rural and urbanised villages will continue to enjoy exemption from property tax. Following a stiff resistance from deliberative wing of Municipal Corporation of Delhi, the proposal for imposition of property tax in those areas has been rejected.

Councillors of the ruling BJP and Opposition Congress party, mostly belonging to rural areas, vehemently opposed the proposal of the civic body for levying property tax in rural and urban villages. While creating a din in recent standing committee meeting in Town Hall on the issue, they said such property tax in such a region will not be accepted under any circumstances.

Justifying exemption, they added people living villages require more space to keep their animals and to store fodder; space is also needed to keep agricultural equipment and tractors.

It was also stated if such benefit is not given to them, will be injustice to the people having limited sources of income.

The resistance from deliberative wing came as a shocker for executive wing because the amendment bill passed by the Delhi assembly for total exemption from payment of property tax to any vacant land or building included in rural or urbanised village occupied for residential purpose by any original owner and legal heir had already been rejected by the President of India earlier. However the president was agreed to grant immunity to those having a piece of land measuring upto 200 square metres.

During the meeting, Vijay Pandit (Palam), Vijay Pandey (Rohini), Chaudhary Mehak Singh (Bhajanpura, Jai Bhagwan Yadav (Begumpur)—all from BJP including Deputy Chairman Standing Committee Sarita Chuadhary and Leader of Opposition Jai Kishan Sharma asked Chairman Standing Committee Yogender Chandolia not to pass the proposal and pressurized him to send it back.

“People in living villages have meager income; they are left with small piece of land because their large chunk of land has already been acquired by the Government. Then what is the meaning of imposing tax on them, how will they pay. Therefore we opposed the proposal, if it is brought again in the house, we will contest there also,” said Pandit. Congress leader Sharma also favoured the rejection of the move and said since this is the only source of their income, residential self-occupied properties or properties occupied by legal heirs in village abadi be totally exempted from property tax.

On the other hand, a senior official of MCD it will certainly have adverse affect over the revenue collection of the civic body. “Most of the farm houses are constructed in rural and urbanised villages. If total exemption is allowed, the MCD revenue will be adversely affected,” said he.

Last Updated on Monday, 25 October 2010 06:31
 


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