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Yadu Muntha (General Manager)     20 April 2015

Bangalore region commercial or resedintial tax

Hi , Some from bangalore region can reply is .need your advice.We are staying in HSR bangalore in a rented house ground floor and it is considered as residential property.The house is of total GF+FF+Terrace +GF Car Garage.We are staying in GF-Ground Floor and using the Car Garage.My wife would like to run a Dental Cliniq as she is a BDS holder and the owner don't have issues but he said if the cliniq registered and i put a board out side the property will become Commercial and they have to pay the house tax under commercial usage to BBMP or concern body.Please advice what to be done here and what are the charges/taxes applicable.We will use only car garage as a cliniq not the completely house.


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 6 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     26 April 2015

 the Karnataka Shops and Commercial Establishments Act, 1961, it was ruled that the use of a residence as an office by chartered accountants, lawyers and doctors would not be considered as a commercial activity. The premise of this ruling was that the work and skill involved in such a profession is predominantly mental or intellectual rather than physical or manual.

These cases clearly indicate that there are some instances where professional activity in a residential flat would be considered legal. But taxes as per commercial category 

Yadu Muntha (General Manager)     06 June 2015

Sir,in my case will the total building will be considered as commercial? Or only the garage or the ground floor please let me know.

Ms.Usha Kapoor (CEO)     26 August 2016

Dear  Client,

 

                   The landlord is bound to collect house tax as a portion of th eresodential propwrty is used for  commercial prpoes. Several High Court Reulings and the Honourable Supreme Cpourt Relings laid down th elaw that doctors and CAs etc cannot practise his profession from THEIR resodences as they wpuld be  breaking the MunicipL LW AND LIABLE TO PAY PROPERTY OR  COMMERCIAL TAX A S PER MUNICIPAL LAWS & RULES OF THAT PARTICULAR STATE. I'm providing  alink also of a th e supreme court rulingg g cited by lawyersclub legal expert.. Pleaser read it.https://www.lawyersclubindia.com/forum/Supreme-court-order-regarding-commercial-use-of-residential-48176.asp

Ms.Usha Kapoor (CEO)     26 August 2016

Dear Client,

 

             If you appreciate  the above answer and wiash to thank me  please click the thank you button on this forum.

Ms.Usha Kapoor (CEO)     26 August 2016

Dear Client,

 

             If you appreciate  the above answer and wiash to thank me  please click the thank you button on this forum.

Ms.Usha Kapoor (CEO)     26 August 2016

Dear Client,

 

             If you appreciate  the above answer and wiash to thank me  please click the thank you button on this forum.


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