Builder is liable to pay building tax.
How it relates to per square foot selling rate.
Builder are free to fix the rate.
Who should pay one-time building tax for commercial property in Kerala
Who pays the one time building tax for a commercial property developed by a builder in Kerala? what is the rate of tax? Is it not deemed to be included in the square feet rate at which the property is sold to a buyer ?
Asked 4 years ago in Property Law
Religion: Hindu
16 Answers
One time building tax is applicable for all buildings constructed on or after April 1, 1973 as per the Kerala Building Tax Act, 1975. A yearly luxury tax of Rs. 4000 is levied on buildings which are constructed on or after 1.4. 1997 having a plinth area of 278.7 sqm or more, in addition to the one-time tax.
2) owner of building has to pay tax
It's paid by builder only. It's included in the price. It should be paid before possession
please give the relevant reference of the KERALA state law(s) / Act holding the builder liable to pay the one time tax or which exempts the owners from the tax liability. The property in question is a *commercial property* and owned by multiple individuals. The whole property was developed and constructed by a builder.
Asked 4 years ago
One time building tax is applicable for all buildings constructed on or after April 1, 1973 as per the Kerala Building Tax Act, 1975. A yearly luxury tax of Rs. 4000 is levied on buildings which are constructed on or after 1.4.1997 having a plinth area of 278.7 sqm or more, in addition to the one-time tax.
Building tax is being assessed, levied and collected by the Revenue and Disaster Management (R&DM) Department of the State Government, as one-time tax on buildings. As per the Kerala Building Tax Act, 1975 (KBT Act).
If the building is completed and than it should be assessed by R&DM. If this procedure is not done by Builder. Check the completion period of the Building on paper reported or you have purchased the property with out taking CC. than you have to pay the Tax.
As per Section 5(1) of the KBT Act, building tax shall be charged on every building the construction of which is completed on or after 10 February 1992 based on the plinth area of the buildings at the rates prescribed. Section 7(1) of the KBT Act stipulates that the owner of every building, the construction of which, is completed or to which
major repair or improvement is made on or after the appointed day6
shall furnish to the assessing authority, a return in the prescribed form (Form II) along with a copy of the plan approved by the local authority or such other authorities as may be specified by Government in this behalf.
2) As per explanation 2 below Section 2 (e) of the KBT Act, where a building consists of different apartments or flats owned by different persons and the cost of construction of the building was met by all such persons jointly, each such
apartment or flat shall be deemed to be a separate building .
3) if there are multiple owners of commercial building then each owner is liable to pay building tax
Tax liabilities can not be transferred to other party.
When you sale your property, any tax on property pending at point of sale lies with you. If the buyer pay such arrear taxes, he can lawfully recover it from you. That is the principles of law settled .
Further you can refer RERA to this effect.
One time building tax is applicable for all buildings constructed on or after April 1, 1973 as per the Kerala Building Tax Act, 1975. A yearly luxury tax of Rs. 4000 is levied on buildings which are constructed on or after 1.4.1997 having a plinth area of 278.7 sqm or more, in addition to the one-time tax.
This can be seen by visiting the website clr.kerala.govt.in.
This one time building tax is to be paid separately by the owner or buyer you can say.
The building tax is to be paid by the owner of the building.
The builder developed the building and sold it to the buyer who becomes the owner after buying it.
The law provisioning the payment of building tax amount as well as transfer of property are central laws.
However the rate of tax to be paid shall vary from one state to another which can be enquired locally.
The buyer of the property is liable to pay the property tax as it's owner.
- One time building tax is applicable for all buildings constructed on or after April 1, 1973 as per the Kerala Building Tax Act, 1975.
- Further, when the building construction is completed for the residential purpose, if it is below 3000 sq.ft, the owner should pay a one time tax to the concerned village office, but if the building is above 3000 sq.ft, owner should pay should pay luxury tax every year.
- Further , when a builder construct a building in the land and provide a completion certificate , then the Tahsildar will assess the one time Building tax. Hence the builder is liable to pay this one time payment .
- Further , thereafter the owner will have to pay property tax etc.
1. According to Kerala Building Tax Act, 1975, one time building tax is applicable for all buildings constructed on or after April 1, 1973. Yearly luxury tax of Rs. 4000 is also levied on buildings which are constructed on or after 1.4. 1997 having a plinth area of 278.7 sqm or more, in addition to the one-time tax.
2. The liability falls on the owner of building.
owner should pay a one time tax.
Please contact local property lawyer for more precise guidance.
Owner of building is liable to pay one time Building tax.
