Category: Municipal Corporations

Your Right to Service

yazdiLeave a comment

The Right To Services* Act, whose official title is the ‘Government Servants Regulation of Transfers and Prevention of Delay in Discharge of Official Duties Act, 2005’, was one of the demands (along with the Right to Information Act) raised by crusader Anna Hazare during his anti-corruption campaign.
Thanks to the relentless efforts of activists, an Ordinance was issued on August 29, 2003. It became an Act on 12 May, 2005 and came into effect on 1 July, 2006. Further, the Rules for the Act were framed on November 14, 2013.

Your Right to Service

 Frequently Asked Questions (FAQ)

  • What is the difference between the RTS* and the RTI Acts?
  • What is a Citizens’ Charter?
  • What are the key features of the RTS Act?

Learn more

 

Advertisement

Know your Mumbai Municipal Corporation (BMC / MCGM)

yazdiLeave a comment

An interesting set of questions and answers including the following :

  • What is the procedure for obtaining a certified copy of the building plan?
  • What is the procedure for enclosure of Balcony?
  • What is the procedure for filing an appeal for reducing the rateable value of the property?
  • Can a member covers the parking stilt?
  • What should a Flat holder do if the shop keeper on the ground floor is causing nuisance?
  • What should a Flat holder do if there is leakage from the upper flat?

Click Here to read the entire list – excellent for lay persons who want quick and accurate answers

Mumbai: Property Tax – 1000 Cr Loss to BMC

yazdiLeave a comment

The BMC has failed and neglected to collect Rs.1000cr. plus amount in property tax. In this connection Watchdog Foundation has written letters to:
1) Comptroller Auditor General of India- to investigate loss to BMC on account of non levy of property tax on slum dwellers dispite signing agreement in 2006 between BMC, State Government and Government of India.
( PLEASE SEE THE REPLY RECEIVED FROM CAG DATED 25TH JULY 2013DIRECTING THE PRINCIPAL ACCOUNTANT GENERAL MAHARASHTRA TO EXAMINE THE MATTER AND SUBMIT REPORT TO CAG.)
2) Mission Director, Jawaharlal Nehru National Urban Renewal Mission- to discontinue grant to BMC for their failure to introduce mandatory property tax reforms as agreed in the aforesaid agreement signed in 2006.
3) Municipal Commissioner, BMC, Municipal Chief Auditior, Assessor and Collector and others for loss of revenue to BMC.
4) We have also filed RTI applications with aforesaid authorities seeking details of the action taken by them.
It is relevant to state that the Municipal Corporations of Delhi,Chennai, Banglore, Kolkatta, etc. are charging property tax to the slums / jhuggis / zopadis then why BMC dispite signing agreement in 2006 is not collecting property tax. This amounts to deliberate and intentional ommission on the part of MC and others of BMC to recover the said property tax. As such we demand that thisloss occuring to BMC due to the neglect of MC and others should be recovered from their salaries.
The BMC has threatned to recover the property tax that is due with 24% p.a. interest from tax payers. Our question to BMC is that they should first recover
a) Rs.143 Cr. from railways, which it has not paid in taxes for last 15 years
b) Similar or more amount is also to be recovered from State Government
c) The builders owe Rs.628 Cr. out of which only Rs.8 Cr. has been paid. As such is the BMC going to recover Rs.620 Cr. with 24% interest from the builders (seeattached news report).
PLEASE CIRCULATE THIS AMONGST YOUR FRIENDS AND RELATIVES AND TAXPAYERS TO CREATE MASS AWARENESS.
regards
For Watchdog Foundation
Nicholas Almeida/Godfrey Pimenta (gpimenta@rediffmail.com)

sfz62@yahoo.co.in

 

RTI_Reply-Comptroller

The Latest Municipal Policy On Property Taxes

yazdi3 Comments

The Latest Municipal Policy On Property Taxes
By CA, Vimal Punmiya

Highlights:

1. New System of Property Taxes will be applicable with effect from 01.04.2010. in the present system, the property tax is based on Rateable Value fixed at the time when the building receives its occupation certificate and the same does not changes till the building is redeveloped and/or is given on Rent. But however, the percent of Property Tax goes up and as a result the rate of Property Taxes varies from 58% to 315%.

2. There is different rates chargeable to Non-Agricultural Land, Building under construction and Building ready for occupation (such as Flats, Office, industrial Galas, Godowns, shops, etc.) depending on the market value of property as per Ready Reckoner of Stamp Duty published by the Government of Maharashtra.

3. Once the Property Tax is fixed for a property, the same would be applicable for the next 5 years from the date of application.

4. If the Property tax as per the new system is much higher than the Property tax as per the old system, then the Society or the owner would have the option to write to the Municipal Corporation. The same cannot be more than double in the case of the Residential Property and three times in the case of a commercial property. The increase in the Property Tax after 5 years from the date of application cannot be more than 40% for the next 5 yrs. The same would not be applicable in the case of New Building.

5. The same rate of property tax would be applicable whether the property is self-occupied or given to others on the basis of Tenancy, leave and license, lease, caretaker, Business centre, etc in the present system. The same is approved by the Assembly and will be incorporated in the New System. The Officers of BMC have so much of powers that in the case of a let-out property, the Property tax can vary from 35% to 60%. In Pune, Kolkatta, Delhi, the Property tax is double of the normal property tax if the property is given on Tenancy, leave and license, etc.

6. Concessional rates will be applicable to Charitable Organizations such as School, Hospitals, Temples, etc.). In the case Government Offices for Central as well as State, Foreign Embassies, etc no property tax.

7. the property tax will not be on concessional basis in the case of a new building. However, the old building would enjoy a rebate from 5% to 75% depending on the age of the Building. But the after rebate value cannot be less than the value of the land plus the construction cost.

8. The New system of property tax is transparent and even the property owner can calculate the property tax payable by referring to the Stamp Duty Ready Reckoner. Hence, there would be less corruption.

9. As per the New System, the rates of property tax would be reduced in the Suburbs and increased in South Mumbai depending on the age of the building, floor, type of construction, etc payable on the Market Value of the property calculated as per Stamp Duty Ready Reckoner.

10. If the area of the Residential property is less than 500 sq. ft. (carpet area) then there would be no increase in the Property tax payable. Hence, the New System of property tax would not affect 70% of the Mumbaikars for atleast 5 yrs from the date of application.

11. If the property is lying vacant (i.e. if it is not in use) then the property owner can apply to the BMC and the property tax will be 40% for the normal property tax payable.

12. Further, the Property tax would be payable on the Built-up area of the property.

13. There are chances of error in Data collected by MCGM about the age of building, user type(residential, shop, office, etc.), carpet and built-up area of the premises, etc. in this event, society or property owner can file the complaint /objection with MCGM in prescribed format.

14. The complaint has to be filled with respective Municipal Ward office, with the assessment department. The complaint has to be filed within 21 Days of receipt of the property tax Bill. If you file complaint after 21 days, please file the same with request for condonation of delay.

15. Format for complaint is already sent by MCGM along with the new property tax Bills. Pro-forma is attached herewith.

For more details please contact on Helpline 1278 / 022 23670624 or mail to : lodhafoundation@yahoo.com 

Click Here for more details

Click Here for sample complaint format
**********************************************************************************
Courtesy : J.B.Patel (Jeby) Mobile:9820538570
MAHARASHTRA CHS RTI UNION

&

Nagesh Kini, Moneylife Foundation

 

The draconian LBT explained

yazdi1 Comment

Local Body Tax (LBT) is a draconian Act, especially with key words like ‘goods’, ‘dealer’, ‘business’ loosely defined in the legislature, giving enough scope for the administrators to stretch their imagination to fanciful limits to the common man’s harassment and dismay

At the time of introduction of VAT in 2005 the Government of Maharashtra had promised that Octroi would be removed and there will not be any additional tax burden on citizens but now they have introduced  the LBT. Thus, LBT is not a good system of tax collection suited for the 21st century, and when there are many other better options available with the government.

Your dabbawala gets your tiffin box daily to your office in Fort area from your house in Thane. As the financial year comes to an end, one fine day, after December, a LBT officer lands in your office instead of the dabbawala with a warrant to arrest you for having brought into the city limits the goods exceeding the prescribed turnover limits.

Another point against LBT is the cascading effect of LBT. Unlike excise or service tax or VAT, there is no concept of set-off or input credit.

Click Here to read the full article by ANANTHRAM RAO, partner at Borkar & Shenoy, Chartered Accountants

New BMC Property Tax Rules

yazdi5 Comments

Dear Friends

Find below the details of

New BMC Property Tax- Bills/Notices- Rules, hidden in “News and Events” on MCGM Website

  1. There is a change over in the system of MCGM tax/property tax from Rateable Value system to Capital Value system. This is with effect from 1st April, 2010 retrospectively.
  2. MCGM is sending Special Notices to owners of all buildings/properties i.e. Co-operative Housing Societies as well landlords of buildings. Most of the owners have received the said notice. As per the Notice, the tax payers can file objections within 21 days to any of the particulars of property like built up area, factors, categories, capital values, etc.
  3. The Notice states that -“for details of the factors and categories of users of buildings and weightage by multiplication to be assigned to- please refer to MCGM website- www.mcgm.gov.in. (A Sample Notice is attached herewith).
  4. The MCGM website shows the Rules for Fixing Capital Value of Lands and Buildings which contains such critical information for calculation of capital value of buildings/flats and the tax payable in the section called “News and Events” and as such is not easy to locate. The said Rules which provide details of the factors and categories of users of buildings, nature and type of building, age factor, floor factor and weightage by multiplication to be assigned thereto and also the tax rate are very important for all citizens for calculating the tax payable. Therefore, the Final Rules should be posted prominently on MCGM website under a separate and specific heading. (Final Rules are attached herewith).
  5. It is also desirable to post on the MCGM website the main BMC Act and particularly the Amending Act (effecting change in the tax system) as there are references to various sections of the Act in the Special Notice as well as the Rules.
  6. The Notice also states that “For details of Zone, Subzone, and base values, please refer to the Stamp Duty Ready Reckoner of the year 2010”. Since the market value (called base value) of the properties is as per the Stamp Duty Ready Reckoner (SDRR), the complete SDRR of the year 2010 should also be posted on the MCGM website for ready reference. This is very important as the entire new tax system is based upon SDRR and without its ready and easy availability a tax payer cannot have the complete picture regarding his tax payment responsibility.
  7. The said Special Notices are being sent by the MCGM to landlords, housing societies etc. It is possible that the landlords or the Society officials may not circulate copies to the tenants and the members who are important stake holders in the matter. It would be hence desirable that the MCGM issues an advisory or direction to the owners/addressees of the Special Notices to circulate them to all the occupants in the building to enable them to send their comments and objections, if any, to the MCGM in time. This will save a lot of potential disputes and litigations which can unnecessarily jeopardize the new tax system.
  8. The 21 days time given for response/objections is not at all adequate. The MCGM has  taken  good 3 years to set the new tax regime in motion but has given only 3 weeks to respond to the Notice and all the property facts and the parameters stated in the attachments. It is suggested that the time should be extended at least to 60 days.
  9. The change over in the system for levy of BMC tax/property tax impacts all citizens of  Mumbai. Therefore, the entire process has to be transparent and citizens should not be compelled to run from pillar to post.

Thanks and regards
For JANHIT MANCH

Utsal Karani

Hon Secretary

(9324991030)

Final rules fixing capital value of buildings

002

Model RTI township

yazdiLeave a comment

All information and working of Ashrafpur Kichaucha of Ambedkar Nagar District of UP is available at www.npakmakdoom.com This is an initiative of Alok Kumar Singh EO of the local town committee of this small town of less than 16000. He has done this with no extra budget since 2008! My salute to Alok, who has set an example for the entire Country!

Courtesy : Shailesh Gandhi

With three computers and a scanner, UP town is an open book – Click Here for the Indian Express Report