• Clarity on running Dance studio

I have a Dance studio in Basement of my home.  It is a residential property. It is on the main road and we Pay residential property tax and have Residential Power Meter.

I need clarity on below points
1. Do we need to convert House Property into commercial to Run Dance studio in Basement?
2. do we need to apply for Commercial Power meter for Basement?

Our neighbours are running commercial activities in basement.

Please guide!
Asked 1 year ago in Property Law from Delhi, Delhi
Religion: Hindu
If the dance studio is your means of livelihood then you can operate it from your residence. As long as your are paying the bill for your basement where the studio is operated there is no loss of revenue to the government. The residential character of the property is not changed by the operation of a dance studio in a part of it. 
Ashish Davessar
Advocate, Jaipur
20797 Answers
556 Consultations

5.0 on 5.0

1) you would need license under shops and establishment act of your state for running dance studio

2) since premises is being used for commercial purposes you would need commercial power meter 

3) as far as conversion of house property into commercial kindly make inquires with muincipal corporation 
Ajay Sethi
Advocate, Mumbai
33862 Answers
1880 Consultations

5.0 on 5.0

Basement or cellar means the lower storey of a building below or partly below the ground level, according to the “The New Okhla Industrial Development Area Building Regulations and Directions 2006”.
Yes, it is legal to use residential property for commercial purpose, provided that, the prior permission of Municipal authorities of that area should be taken and if the professional is a tenant then landlord’s permission is required.The work done by professionals involves element of service and is not a commercial activity. Hence, it is not illegal.
“The Municipal Corporation of Delhi would now permit property owners to use basements for both professional and commercial purposes. For instance, in posh colonies under categories A and B, residents would have to pay Rs 4,375 per square metre for conversion.
in all cases whether it is Delhi, Noida or Gurgaon, the services rendered by Lawyers, Doctors, Chartered Accountants and Architects to name a few, have remained unaffected when it comes to usage of basement for commercial activities. These services as discussed earlier do not fall within the ambit of commercial activities as they are service activities and do not involve sale and purchase of goods. However, for all other kinds of commercial activities as per the prevalent building laws or bye- laws, municipality laws; specific permissions are required to be obtained before taking up a commercial activity in a residential basement.
T Kalaiselvan
Advocate, Vellore
23890 Answers
236 Consultations

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