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
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
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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
Property taxes is state subject and varies from state to state
2) tax would not be charged at residential rates
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.
- 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.
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.
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.
Dear Sir,
The said tax in generally commercial but the correct information in present case may be obtained by the medium of RTI.
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