• 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 1 month ago in Property Law
Religion: Hindu

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16 Answers

Builder is liable to pay building tax. 

How it relates to per square foot selling rate. 

Builder are free to fix the rate. 

Kallol Majumdar
Advocate, Kolkata
2683 Answers
4 Consultations

5.0 on 5.0

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 

Ajay Sethi
Advocate, Mumbai
75972 Answers
4544 Consultations

5.0 on 5.0

It's paid by builder only. It's included in the price. It should be paid before possession

Prashant Nayak
Advocate, Mumbai
19774 Answers
36 Consultations

4.4 on 5.0

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.

Prashant Nayak
Advocate, Mumbai
19774 Answers
36 Consultations

4.4 on 5.0

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.

Ganesh Kadam
Advocate, Pune
10212 Answers
92 Consultations

4.9 on 5.0

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 

Ajay Sethi
Advocate, Mumbai
75972 Answers
4544 Consultations

5.0 on 5.0

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. 

Kallol Majumdar
Advocate, Kolkata
2683 Answers
4 Consultations

5.0 on 5.0

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.

 

Rahul Mishra
Advocate, Lucknow
9088 Answers
16 Consultations

5.0 on 5.0

This can be seen by visiting the website clr.kerala.govt.in.

Rahul Mishra
Advocate, Lucknow
9088 Answers
16 Consultations

5.0 on 5.0

This one time building tax is to be paid separately by the owner or buyer you can say.

Rahul Jatain
Advocate, Rohtak
3392 Answers
4 Consultations

4.9 on 5.0

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.

 

T Kalaiselvan
Advocate, Vellore
65940 Answers
861 Consultations

5.0 on 5.0

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.

T Kalaiselvan
Advocate, Vellore
65940 Answers
861 Consultations

5.0 on 5.0

- 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. 

Mohammed Shahzad
Advocate, Delhi
3427 Answers
39 Consultations

5.0 on 5.0

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.

 

Ashish Davessar
Advocate, Jaipur
29554 Answers
850 Consultations

5.0 on 5.0

owner should pay a one time tax. 

Please contact local property lawyer for more precise guidance. 

 

Mohammed Mujeeb
Advocate, Hyderabad
16593 Answers
11 Consultations

4.5 on 5.0

Owner of building is liable to pay one time Building tax.

Mohit Kapoor
Advocate, Rohtak
8753 Answers
3 Consultations

5.0 on 5.0

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