Commercial property

Higher tax slabs proposed for Solan commercial property: The Tribune India


Tribune press service

Ambika Sharma

Solan, April 19

Commercial property owners will have to pay more as Solan Municipal Corporation (MC) has proposed higher tax brackets for various categories of commercial property such as hotels, bars, restaurants, clubs, houses hosts, travel agencies, etc.

Objection date extended

Commissioner, Solan MC, Rajiv Kumar, said the regulations were approved at a special MC general house convened on February 23. Objections were requested from the owners until March 26. This date has now been extended to April 25. objections, these rates would be notified.

Owners of residential properties, including rental properties, however, received relief with a significant reduction in the proposed tax. From the previous rate of Rs 4,230 per 100m for residential properties, the new tax slabs have been reduced to Rs 608 per 100m and Rs 1,265 per 100m, respectively, for residential and residential rented properties.

Previously, a flat tax rate of Rs 4,230 per 100m was applicable to all residential and commercial properties. Various commercial categories have been designed now on the basis of the built-up area as well as the activity carried out.

MC commissioner Solan Rajiv Kumar said the regulations were approved at a special MC general house convened on February 23. Objections were requested from the owners until March 26. This date has now been extended to April 25. objections, these rates would be notified.

In a bid to boost its revenue, hotels above a built-up area of ​​2,000 sqm, showrooms, restaurants, industries and factories would now be charged a maximum tax of Rs 20,250 per 100 Mr. Similar properties with a built-up area between 1,000 and 2,000m² and a showroom above 1,000m² would be charged Rs 16,875 per 100m.

Other commercial buildings like shops, schools, colleges, learning homes, hospitals, theatres, clubs and paying guests were also subject to a higher tax rate of Rs 11,813 per 100m. Godowns, dhabas, stalls and other types of properties not covered by the specified properties would be charged at Rs 5,063 per 100m.

The Government of the Union has made it compulsory to revise the statutes of the property tax in Local Urban Authorities (ULB) according to the unit area method, taking into consideration the baseboard area of ​​a building. These statutes would allow a ULB to obtain the central subsidy. A tax of up to 25% may be imposed for various categories such as commercial, domestic, etc., taking into account factors such as location, structure, age and occupancy of a building.

Raising the property tax is a risky proposition for the MC in the election year. The MC earns an income of Rs 47.30 crore per annum in the form of property tax. A significant boost would be recorded in his income with this increase.