Running pre school is commercial activity and you need to pay commercial property taxes for the same
I have rented a small bunglow in Andheri and run a preschool NOC from thr owner to run the preschool is obtained. But now the BMC states that this is a rental premises and we need to pay commercial tax for the same. Please guide How do we prove that this is not a commercial activity
Running pre school is commercial activity and you need to pay commercial property taxes for the same
1. Yes , running a school is a pure commercial activity. Therefore the local authority is not wrong if it asks for tax assessed for carrying out commercial tax.
2. You need a separate license for running school. So apply for it and pay commercial tax. However due to closure of school during pandemic you can ask for remission in tax.
1. Pre-school is a commercial activity and you have pay commercial taxes in accordance with the same.
since the purpose of establishing the pre school is earning, resultantly, it can be presumed that it ia a commercial activity
1. Pre-School, wherein Public movement and Fees collection shall be evident, is classified as "Commercial Activity" and is liable for commercial property tax, commercial water charges and commercial (LT2) electricity rates. However random Home Tuition without public board display shall not be classified as commercial activity.
2. There is no exception to above, whatsoever.
Running play school in residential area is a commercial property and for that purpose you have to pay the commercial taxes electricity and any other municipal taxes applicable for this school.
“There is no provision under the Mumbai municipal corporation Act for such daycares and play schools. It does not come under our ambit and hence we cannot initiate action against them. The centres can choose whether or not they want a certificate from us,” said by shops and establishment department of the BMC.
Dear Sir/Madam,
It is suggested that the said preschool is generally treated as commercial activity but you may say that it is for the charity purpose and you don't earn any profit.
Imparting education is not a commercial activity. You will find a number of judgement/court rulings on this proposition.
If BMC has served a notice upon you/sought commercial tax under a notice; reply to it.Let this reply be prepared under guidance of a local lawyer.
- As per rule , Pre-school is not a teaching activity or a commercial activity, and there is no standards, rules established by the government .
- Further , there is not requirement of Licenses under Shops and Establishment act for running a Pre-Schools.
- Further if there is no concept of licensing a pre-school , then it cannot come under the commercial activity
- However, if a licence has been issued to you for running the preschool , then it will come under commercial activity.
Generally, no one allow to run a school in a residential house, it is against the law. ... In case if the society allow the other members to run the school more than 20% space in residential, it is also illegal and you can challenge the society's permission. So it's a commercial activity.
If you have been asked to pay commercial tax then you cannot agitate because you are augmenting revenue from this activity.
You don't need to pay commercial charges as some businesses are allowed even in residential premises without considering same as commercial
Yes pre school is a commercial activity and you need to pay commercial tax if you want to continue the school in residential premises.
is it your case that you are only using a part of the bungalow for the said activity?
if not, then a preschool activity being a profit making business has to be re-assessed for property tax considering it as commercial