Property Tax

Urvashi Saumya (Querist) 05 June 2009 This query is : Resolved
What is the provision of Property Tax in Mumbai (Maharashtra)? Whether it would applicable in case of Rent/License Agreement?
whether the Licensee require to bear this the property Tax?
If Yes, then what would be the way out to save from bearing/paying the property tax?
Pls advise.

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Y V Vishweshwar Rao (Expert) 05 June 2009
1- The Proeprty Tax, in genral, is to be paid by the Owner of the proerty only

2- In case the property is givne on lease the Tax is to be paid in the name of Owner and by the Owner, and if it is paid by the lessee the same would be on behlaf of Owner and shall be deducted in the Rent / licence fee , the terms of lease /licence to be verified , So far the Muncipal Corporation is concened , the tax liability, is the liability of the Owner of the proerty to pay the Tax- the Municipality can demand & Collect the Tax from the the lessee and Lessee is entitled to deduct the same in the Rent .

Urvashi Saumya (Querist) 05 June 2009
Thanks for your reply!But if the owner of the property is insisting to incorporate the clause in the license agreement to pay the property tax, in that case which kind of agreement should be executed to save from the property tax or what other option can be exercised?

Y V Vishweshwar Rao (Expert) 05 June 2009
I think it is sufficient to include a clause in the agreement - that the Property Tax should be paid by the lessee in the name of the Owner and the same is component of the lease amount.
Agreed lease amount plus the Proeprty tax together would be the lease/Rent-amount.

Urvashi Saumya (Querist) 05 June 2009
Thanks for you prompt reply.

In Maharashtra, only Municipal Corporation Act is covering the provision of the property tax or any other legislation too, if any pls provide the details.

Y V Vishweshwar Rao (Expert) 05 June 2009
Property Tax is concerned with Municpal Corproations, Muncipalities , Grampanacghhayaths , according to the Situation of the Buildign Property -