Collection norms being worked out
For rented commercial properties, the MCD has raised tax from 10% to 20%. The increase for self-occupied commercial properties is 5%.
By Ruhi Bhasin, TNN |
NEW DELHI: For rented commercial properties, the MCD has raised the tax from 10% to 20%. The increase for self-occupied commercial properties is 5% — from 10% to 15%. MCD has also proposed to bring some commercial enterprises under a special category and charge 20% from them. Said MCD commissioner KS Mehra: ‘‘Three-star hotels, malls, air-conditioned gyms and clubs which have a swimming-pool and will be brought under a separate category. Such commercial establishments will be charged 20% tax rate.’’
Meanwhile, on the professional tax front, besides wage earners, other categories who will be charged professional tax are dealers liable to pay tax VAT. For such dealers, those paying upto Rs 25 lakh will be exempted from professional tax. The highest slab under this category is Rs 2 crore and above, under which people will have to pay Rs 2,500 per annum.
Other categories are occupiers of factories, employees and shopkeepers in Delhi, owners or lessees of petrol/diesel filling stations and service stations etc, owners or occupiers of distillers and bottling plants, licensed country liquor vendors and owners or occupiers of residential hotels below 3-star category etc. Said an MCD official: ‘‘There are a total of 15 such categories which will be charged professional tax keeping their business turnover in mind along with the size of their business. But the tax will not exceed Rs 2,500 per annum.’’
The mechanism for paying professional tax is still being worked out. Said Mehra:‘‘Even those people who are living in Gurgaon and Noida but are working in Delhi will be liable to pay this tax.’’ Up till now, MCD had been levying property tax, toll tax, electricity tax and is now going to levy professional tax. The taxes that it is not levying include a tax on boats, education cess, a betterment tax on the increase in urban land values caused by the execution of any development or improvement work and a local rate on land revenues. At present, the civic agency is only planning to charge the professional tax and will not introduce any new taxes.
Meanwhile, on the professional tax front, besides wage earners, other categories who will be charged professional tax are dealers liable to pay tax VAT. For such dealers, those paying upto Rs 25 lakh will be exempted from professional tax. The highest slab under this category is Rs 2 crore and above, under which people will have to pay Rs 2,500 per annum.
Other categories are occupiers of factories, employees and shopkeepers in Delhi, owners or lessees of petrol/diesel filling stations and service stations etc, owners or occupiers of distillers and bottling plants, licensed country liquor vendors and owners or occupiers of residential hotels below 3-star category etc. Said an MCD official: ‘‘There are a total of 15 such categories which will be charged professional tax keeping their business turnover in mind along with the size of their business. But the tax will not exceed Rs 2,500 per annum.’’
The mechanism for paying professional tax is still being worked out. Said Mehra:‘‘Even those people who are living in Gurgaon and Noida but are working in Delhi will be liable to pay this tax.’’ Up till now, MCD had been levying property tax, toll tax, electricity tax and is now going to levy professional tax. The taxes that it is not levying include a tax on boats, education cess, a betterment tax on the increase in urban land values caused by the execution of any development or improvement work and a local rate on land revenues. At present, the civic agency is only planning to charge the professional tax and will not introduce any new taxes.
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