Property tax

Ajay Kochar (Querist) 18 June 2016 This query is : Resolved
Respected Sirs,

I am living in a registered CHS Ltd. in dombivli, Maharashtra.

My question is, still there is no conveyance deed with the builder and the property tax of the society open area is payable by builder only. If builder fails to pay the Property tax of the open area, What impact it gives on the society and its members?

Request to reply on the same.

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M V Gupta (Expert) 18 June 2016
ur assumption that as the conveyance is not given to the Society the builder is liable to pay the taxes for the flats as well as the common areas may not be correct. The flat purchase agreement generally provides that the flat purchaser shall be liable to pay the taxes and property maintenance charges proportionately to the area of the flat from the date of possession. The builder will however be liable to bear and pay the same in respect of the unsold flats.

ADV-JEEVAN PATIL, MUMBAI (Expert) 19 June 2016
You r right why we should pay for full plot. But land owner refuse to pay n have close nexus with tax authority n direct tax bill to society. When society is formed, TMC send tax of soc.plot to society. It is divided n paid.If conveyance is not made take up the issue with land owner/builder to pay if possible. 9869400938 Mumbai

Ajay Kochar (Querist) 20 June 2016
Respected Sir,

As I am paying the property tax of my Flat regularly, I am asking about the area of the garden, Gymnasium, swimming pool, meditation center, etc. If the said tax not paid by builder, can this liability may get divided between Flat Owners?

adv.bharat @ PUNE (Expert) 20 June 2016
No payment of tax is not divided on flat owner.

Dr J C Vashista (Expert) 22 June 2016
I respectfully disagree with experts.
Property tax is levied by municipality on variable factors the property in its jurisdiction irrespective of its usage such as agriculture/commercial/residential, title or any agreement(s).

The builder has taken possession of land for specific purpose only i.e., construction of flats for and on behalf of members of society. Hence even if the builder shall pay property tax he would include the tax amount paid in the cost of flat(s) being constructed, ultimately oil shall come out from oil-seeds only.

Tax paid for entire plot of land (including common area/services) shall be calculated and apportioned to all members on pro-rata basis to be paid by Society.

M V Gupta (Expert) 22 June 2016
As regards the taxes/outgoings for the common facilities such as the Gym, swimming pool, club house, garden ares etc as these form part of the common areas for the benefit of the members, the Society, if there is only one society in the complex will have to pay the same and if there are more than one society in the complex all the Societies will have to pay the taxes proportionately.When there are more than one society these common facilities are conveyed to the federation of the Societies which will apportion the taxes and other outgoings in such proportion as decided by the Federation and the members of each society will have to bear and pay for the same.

Kumar Doab (Expert) 25 June 2016
Dr. J.C. Vashista has posted facts and humor and concluded well, in one line:

'ultimately oil shall come out from oil-seeds only.'