• Property tax on residential club houses in hyderabad telangana

Dear Team

How is property tax calculated by municipal authorities on club houses which are in gated residential societies. Should the tax charged be on residential rate or commercial rate?
regards
Siva
Asked 5 years ago in Taxation

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13 Answers

Residential rates as it's only for residential purpose and not a commercial entity. If it's a commercial entity and collects amount for business then commercial rate will be applicable

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Property taxes is state subject and varies from state to state 

 

2) tax would not be charged at residential rates 

 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

The club house located within the residential complex and is meant only for the use of the residents of the gated community and no commercial activities are allowed in it, then the taxes applicable for residential property shall be applicable for this also. 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

- The term commercial property refers to buildings or land intended to generate a profit, either from capital gain or rental income. 

-  However, Greater Hyderabad Municipal Corporation uses the annual rental system for calculation of property tax on residential, as well as commercial buildings.

- Further , even if the building is not actually earning any rent, the municipal body levies property tax, based on its potential to generate rent. 

- You can calculate the monthly rent by multiplying the plinth area with the state-notified monthly rent value.

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Hi

1) For purpose of property tax assessment Club Houses in gated residential areas are classified as commercial if 

a) Resident owners have only the right of use and 

b) Club house (undivided share of land) and building continues to remain in the name of builder 

 

2) Club houses are classified as residential if 

a) Club house is constructed in the common area/ undivided share of land of residents or

b) Club house and building is transferred in name of resident welfare association

 

So,please check the documents pertaining to title , ownership of club house . 

Hope this information is useful. 

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

File n RTI for this.

As it changes with the state guidelines 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

commercial refers to any property used for business activities. Commercial refers to hospitals, assembly plants, storage warehouses, shopping centers, office spaces, or any other location for a business enterprise. hence tax applicable for residential. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Dear Sir,

The said tax in generally commercial but the correct information in present case may be obtained by the medium of RTI. 

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

This needs to be answered by a local lawyer well versed with local laws.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

Club House in Gated  Community is classified as Commercial unit and charged at Commercial Rates.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

Property tax on this property will be calculated based on the commercial property as the clubhouse is being used as a common property it is not a residential property

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

The clubs are charged at a commercial property rate.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Club house inside the society if used for commercial activities then municipal corporation will charge commercial tax on club house even if it is situated inside a residential complex.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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