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BMC renews property tax rebate for IT companies
November, 18th 2008

The Brihanmumbai Municipal Corporation (BMC) has renewed rebates in property tax for all software firms and IT-related companies.

In 2003, the state had directed the civic body to provide rebates to IT firms for the next five years. But as the deadline has expires, the BMC has now renewed the sop.

According to the proposal that would be tabled before the BMC standing committee next week, any company related to IT or providing service in the sector, will have to pay tax as per residential rates and not commercial.

At 83.5%, the tax for residential property is far below the 112.5% for commercials ones.

"To encourage more and more companies to set up shop in Mumbai, we wanted to make sure that these companies continue to get tax benefits,'' said a senior BMC official. The BMC's annual collection from property tax is around Rs 2,000 crore.

 
 
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