Legal formalities for keeping paying guest in house

This query is : Resolved 
 

(Querist)
14 October 2011

Sir, I want to keep 15/20 male paying guests in the entire 2nd floor of my house located in Kolkata, West Bengal.
Is any licence required from any authority? Can you please guide me about the legal formalities to be taken to set up the same?
Regards,
Kuldeep Ghosh.

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ajay sethi (Expert)
Click to Talk
14 October 2011

are you staying in cooperative society in kolkata? if so you will need permission of the society before you cna take paying guests

prabhakar singh (Expert)
14 October 2011

The scenario you show us looks like not a simple paying guest condition but of a lodge.

Kuldeep Ghosh (Querist)
14 October 2011

Thank you sir for your answer. I am not staying in a co operative society ,but in our own 3 storied residence in a residential location of Kolkata.

ajay sethi (Expert)
Click to Talk
14 October 2011

you are planning to keep 20 paying guests . as mr prabhakar singh rightly pointed out it is more of a lodge .

you will hav e to make application to local muncipal corporation as you will be running a alodge .

by no strech of imagination keeping 15 to 20 persons in your house would be labelled as paying guests .

M.Sheik Mohammed Ali (Expert)
14 October 2011

yes, i do agree experts query reply

Kuldeep Ghosh (Querist)
14 October 2011

Thank you Mr Phrabhakar ji for your answer.The scenario though may look like a lodge,but i do not want set up a lodge sort of thing. As i have enough space to rent out to 15 /20 males as paying guest purpose, I have thought of setting up a paying guest to earn some revenue. As letting out to families in separate units , i won't be able to generate enough revenue from my property, i have thought of letting out my property for paying guest purpose. Sir, please guide me.

sankar narayanan (Expert)
14 October 2011

you need to seek permission of the local municipal authority, and shop and establishment act

Kuldeep Ghosh (Querist)
14 October 2011

Sir, is there any rule that says ,keeping 20 PGs amounts to setting up a lodge? Can i not keep any number of Pgs if I have space for such? And suppose I am required to set it up as lodge, will i have to change my residential building into a commercial one? Will my taxes change then?

sankar narayanan (Expert)
14 October 2011

yes your tax slab will differ to commercial tariff.

Kuldeep Ghosh (Querist)
14 October 2011

Thank you Mr sankar Naryanan.
Sir what sort of permission(name of the permission) do I need need to seek from the local municipal authority? Will the nature of residence building change to commercial then?
And are you suggesting of making a trade licence (shop and establishment act)?

Kuldeep Ghosh (Querist)
14 October 2011

Is the tax slab into a commercial one huge?

Kuldeep Ghosh (Querist)
14 October 2011

Is the change of tax slab from residence into a commercial one huge?

sankar narayanan (Expert)
14 October 2011

yes absolutely the tariff is vary from ordinary. that all in your limitation of corporation slab or municipal

Shastri J.K. (Expert)
14 October 2011

i do agree experts.

Dhingra, 1962dcg@gmail.com (Expert)
Click to Talk
14 October 2011

Dear Kuldeep,

You have not mentioned, in your so called paying guest house, which type of facilities you propose to provide to your paying guests, like only bed and breakfast or, lunch, dinner and every other faility like a lodge or hotel?

However, because you are serving as a “home away from home” for your guests, you would need to get yourself licensed from the municipal corporation, local fire and health departments. Environment clearnce may also probably be required. You would therefore need to comply with their safety requirements. Since security issues may also be involved, you would also be required to approach to the police department to know if there is any condition set by the Kolkata Police. These requirements, of course, vary from community to community. So be sure to visit the concerned government agencies and inquire as to their different specifications for licensing. These licenses have to be renewed from time to time, as prescribed by those departmental agencies.

Kuldeep Ghosh (Querist)
14 October 2011

Thank you Mr. P S Dhingra ji,
As to inform you further,i would like to add that i will provide a bed with matress and a wooden side table and an almirah. I also intend to set up a ready kitchen ( gas, utensils,fridge and other aminities )for the paying guest to cook anything they want on their own if they so require,otherwise food has to be arranged by the guest themselve.

Kuldeep Ghosh (Querist)
14 October 2011

Mr Dhingraji,
some of the experts are saying that i cannot set up a paying guest with 20 guest seater arrangement. Is that true? My query is, will i have then to set up a lodge? Can i not set up a paying guest accomodation set up with prpper arrangements and licences?

Kuldeep Ghosh (Querist)
15 October 2011

Mr Dhingraji,
some of the experts are saying that i cannot set up a paying guest with 20 guest seater arrangement. Is that true? My query is, will i have then to set up a lodge? Can i not set up a paying guest accomodation set up with prpper arrangements and licences?

prabhakar singh (Expert)
15 October 2011

Dear Mr.Kuldeep Ghose!

We just did not conclusively opined so as understood by you,i in particular just doubted so because of the huge number of guests;these things are mostly regulated by,local bodies then it would be good to check with them for the purpose was the suggestion.
There is no reason to go panic.there is no central legislation regulating these matters.
The suggestion are for caution and due inquiry as keeping so many people does put one for some precautions.
When you have net facility you can by browse know hundred of paying guest in Kolkata ,where you should visit to know things about rules at local level.

Dhingra, 1962dcg@gmail.com (Expert)
Click to Talk
15 October 2011

Dear Kuldeep,

I think my answer, itself, should have provided some hints how to act in a legal way, as we provide hints to proceed further and only your local laws and authorities can provide you appropriate help to solve your problems based on the detailed information desired by them. Since you are providing merely the fully furnished accommodation and NOT breakfast, lunch or dinner, etc. you may need to consult the municipality under which category the authorities or the law passed for such purposes can help you. The general concept, however, is that if you provide such accommodation just for very short periods, e.g. for a few days to different people, that can be treated as guest house or lodge, otherwise if provided for continuous long stay your local tenancy laws would apply. So, for more clarity, you have already been advised to contact the local authorities.

Govind (Expert)
16 October 2011

I agree with Mr. PS Dhingra



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