By Accommodation Times Bureau
After surpassing major hurdles posed in service tax sector and introducing new tax
regime, the revenue wing of the city corporation is now grappling with new
challenges from the commercial buildings’ owners.
The commercial buildings constructed after April 2011, will have to be valuated
under new tax regime. For buildings less than 100 sq.m, tax is assessed at a rate of
Rs 80 per sq.m. If the building is more than 100sq.m, an amount of Rs 110 per
sq.m will be charged and for buildings above 200sq.m, tax will be raised at Rs 150
Under the old tax regime, commercial buildings were assessed as a whole which
resulted in a huge amount as property tax. The revenue wing is now receiving
applications to bifurcate commercial buildings within ranges of 100 sq.m – 200
sq.m so as to raise lesser tax.
An official with corporation’s revenue wing said, “For instance if a building is
1,000 sq.m, we could assess the building as a whole and charge a hefty sum,
however the owners now come up with applications for separate building numbers
with smaller dimensions which would ensure comparatively smaller amounts as
The city corporation is seeking a clarification from the state government on ways
to deal with such applications. “If these applications are processed in favour of the
owner, it would result in a huge revenue loss for city corporation. We are awaiting
a clarification from the government on how to bifurcate such buildings and assign
separate numbers,” the corporation official said.