Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: form 3cd :: cpt :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: articles on VAT and GST in India :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: VAT Audit :: list of goods taxed at 4% :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT
« General »
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces
 CAG lens on entities avoiding tax with ‘farm income’ claim

Civic body forms committee to review its property tax collection rules in city
September, 08th 2014

With several petitions filed in the Bombay High Court (HC) by property owners alleging that the Brihanmumbai Municipal Corporation (BMC) had wrongly calculated and collected property tax in the city, civic body has now set-up a committee to review the existing rules of property tax collection and form a new set of rules by April 2015.

Headed by the deputy municipal commissioner of the assessment and collector department, the committee includes the head of the department, three assistant commissioners each from the island city, eastern and western suburbs along with law and tax consultants.

After the civic body changed the property tax system from rent value to capital value in 2010, the new formula for calculating tax was set as built-up area (BUA) x Ready Reckoner Rate (RRR) of the property. This formula has been used to collect taxes since 2013 with arrears dating back to 2010.

While the corporation claims the new system brought parity in tax payments across Mumbai, property owners complain of glitches and lack of transparency in calculation and collection. Subsequently, several petitions filed in the HC challenging the new system stated that the civic body was wrongly calculating and collecting property tax on BUA instead of the carpet area (CA), as was the previous practice as per the provisions of the Mumbai Municipal Corporation Act, 1888.

“While we aim to frame rules that are tax-payer friendly, we have observed several imbalances in the rules that are also preventing us from maintaining revenue neutrality. Since property tax is one of the main sources of revenue for the civic body, we will review the rules to prevent losses,” said Ramesh Arote, assessment and collector, BMC.
Stating that it wanted to curb revenue losses, the civic body had proposed a new formula for calculating tax — “Carpet Area x RRR x 1.2%” earlier in July. The proposal was, however, rejected by the standing committee members of the civic body, who criticised the cash-rich corporation for failing to relieve the burden on property owners in the city. In 2014, the corporation expects to add around Rs 2,260 crore to its coffers by collecting property tax.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions