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jagmohan (Office Asst)     20 December 2013

Practicing ca office status

Practicing CA Office in Residence Non-Commercial status

 

I am posting this on behalf of CA Jambu Agrawal & Associates, Kota Rajasthan who is having office premises at his residence at B-370, Talwandi, Kota 324005 Rajasthan and is using 50% of the premises for office and in the rest of 50% has his own office. He is being charged water consumption bill at commercial rates which it is felt not justified.

 

I shall appreciate if you clarify the legal position in respect of CA's premises getting treated as a commercial activity as for water consumption is concerned. If you are of the opinion that the charges are being illegally collected by the local authorities, what should be the course of action to get the problem addressed.

 

Please let me know the supporting ruling and citations thereof which we can quote while making the representation to the authorities.

The reply shall be highlly appreciated.

 

Thanks



Learning

 3 Replies

Kumar Doab (FIN)     29 December 2013

 

Water distribution and pricing is state subject.

 

 

There are some judgments that favor that the office of an advocate ( this should also apply to knowledge professional .........CA) is not commercial activity and for electricity commercial charges may not be applied.

 

At the same time in Bombay one publication suggests that 20 % space e be allowed for office in residential locality and Professions such as those practiced by doctors, lawyers and chartered accountants are not considered as commercial activity.

 

Bombay High Court has delivered a judgment that “However In respect of the premises which are used by the professionals like lawyers and doctors for their own residence, the tariff for the electricity supplied to the premises would be charged on the basis of domestic use irrespective of the fact that the premises are used for whole or part of the day also for the purpose of carrying on their professional activity in the whole or part of the premises. “

 

 

The Rajasthan Water Board as it seems has not segregated the charges for advocates, CA, Tax Consultants........................whihc should be done so as to clarify the charges further.

 

The Forum of CA’s/Lawyers/Tax Consultants may have to represent to get a explicit charge schedule for them for electricity and water.

 

 

 

>>> Rajasthan High Court

Sajjan Raj Surana vs Jaipur Vidyut Nigam Ltd. And Its ... on 18 December, 2001

 

https://indiankanoon.org/doc/689880/?type=print

 

https://www.bcasonline.org/ContentType/Contentin.asp?494

 

 

29. Hence, in this view of the matter, the first appellate court has committed error of law by not considering this significant aspect of settled law and erroneously held that the advocate/lawyer's chamber/office situated elsewhere is a commercial establishment, inasmuch as the defendant failed to prove and establish either in its pleading or evidence any of the situation showing the plaintiff being indulged in any commercial activity at the suit premises where supply of electricity is provided or showing that the plaintiff's profession of practicing advocate involved any trade or business indulging in commercial activity, therefore, the impugned finding arrived at by the first appellate court is absolutely perverse and further its finding without discussion of plaintiff's evidence including documentary is not sustainable in law and it was not justified to reverse trial court's finding decreeing the plaintiffs suit in his favour.

 

 

>>> https://rajwater.gov.in/w_tariff.htm

 

Pricing structures (Page8)

 

 

 

3. FLAT RATE CHARGES FOR 15 MM DOMESTIC CONNECTION (UNMETERED)

 

(ii)        No additional charges for additional family members. One family will be treated as one consumer irrespective of family members.

Domestic category shall include the consumers who use water for their bonafide domestic purpose. This category is applicable to residential quarters/houses where water is used for bonafide domestic purpose. This Category will also be applicable to :-

(I)         Government educational institutions. 
(II)
      Places of worship such as Temple/Mosque/Church etc. 
(III)
   Orphanage/Leper homes/Yatim Khana, registred and recognised  by the Social Welfare Department or any other Government Agency. 
(IV)
    Circuit House/Dak Bungalow/Rest House/Jail/Children Rehabilitation Home/Mahila Ashram etc. 

 

 

5. MINIMUM CHARGES PER MONTH FOR NON DOMESTIC CATEGORY 

 

Note: 


(i)
          The consumers which due to having shops in their residential premises categorised under non domestic category as per notification of 12-11-97 shall take the separate connection up to 31-3-99. Till that date billing will be as per domestic tariff rates. From1-4-99, Non domestic rate shall be charged from such consumers. 

(ii)
          Shops having existing Flat Rate Connection will be charged as per item 3 as above.

 

 

The Non Domestic category will include all consumers/establishments not covered by the domestic category and industrial category such as given below:

All type of shops, Offices and Godown, Hospital, Dispensaries, Dharamshalas, Private Educational Institutions, Petrol Pumps without service station, Cottage Industries, Restaurant, Dhabas, Cinemas, Dairy, Motor Garage without service station, Building Construction, Marriage Halls, Nurseries, Railway/Bus Stand, Laundries etc.

 

 

 

 

 

>>> https://www.business-standard.com/article/pf/commercial-use-of-residential-flats-is-expensive-112100900005_1.html

 

utilising 20 per cent of your residential space for commercial use is permissible under law, as long as the business in question falls within certain categories, such as operating banks, nursing homes or dispensaries.

 

“However, these should not be considered as blanket rulings as rules are state specific,” he says.

How much area one can use for commercial purpose depends on the state and the society bylaws.

"Professions such as those practiced by doctors, lawyers and chartered accountants are not considered as commercial activity," says Ahuja of Jones Lang LaSalle India. Besides, activities such as teaching, painting, holding yoga or dance classes, tuitions or conducting cookery classes, are also allowed in a residential area.

The work and skill involved in these professions is predominantly mental and intellectual rather than physical or manual.

 

 

 

>>>    https://blog.amitbajajadvocate.com/2011/08/electricity-tariff-at-commericial-rates.html

https://indiankanoon.org/doc/387777/?type=print

 

Bombay HC has held in an important case that residential premises used by lawyers exclusively as office, will be charged electricity tariff at commercial rates and not at domestice rates. However In respect of the premises which are used by the professionals like lawyers and doctors for their own residence, the tariff for the electricity supplied to the premises would be charged on the basis of domestic use irrespective of the fact that the premises are used for whole or part of the day also for the purpose of carrying on their professional activity in the whole or part of the premises. -

Rajendra G. Shah    V/s Maharashtra State Electricity Distributiohn Company Limited   }

 

>>> https://www.erckerala.org/userFiles/634021091765000000_RETAIL%20SUPPLY%20OF%20TARIFF.pdf

 

LOW TENSION –VI ( LT- VI ) NON-DOMESTIC

 

LT- VI (B

............................ offices of advocates / chartered accountants/tax  14

consultants/

 

 

 >>> This may also be useful

https://urbanindia.nic.in/programme/lsg/teri_uc_report.pdf

 

 

 

 


Attached File : 939976602 sajjan raj surana vs jaipur vidyut nigam ltd. and its ... on 18 december, 2001.doc, 939976602 rajendra g. shah vs maharashtra state electricity ... on 4 august, 2011.doc downloaded: 304 times

Kumar Doab (FIN)     29 December 2013

 

 

>> The Supreme Court also has in several judgments maintained the above-cited distinction between a trade and business on one hand and the practice of profession on the other hand...................

 

 

IN Maharashtra (Mumbai) the Bombay High Court has delivered judgments that:” the office of a chartered accountant was not a "business and commercial'' establishment.”.

 

This has resulted in explicit declaration in Bombay Shops and Commercial Establishments Act:

2.Definitions:  (27) "Shop" means.....................

NOTES'

 

The Office of Chartered Accountant with article clerks and one salaries ordinary

clerk is not a commercial establishment so as to attract the provisions of the Act.

N.E. Merchant v. State 1968 LIC 1034 AIR Born.282 1968 Cri.LJ1041.

 

 

In the attachment as you would notice shows that even if the entire premise of flat is used by a professional person for the practice of his profession, there is no change of user to a commercial one......................

 

 

 

>> Whereas in case of Rajasthan Shops and Commercial Establishments Act an explicit declaration confirming exemption is not seems to be stated.

 

Rajasthan Shops and Commercial Establishments Act, 1958 (Act No. 31 of 1958)

 

(Received the assent of the President on the 24 th day of July, 1958)

 

2. Definitions

(17) "shop" means...............

 

3. Exemptions.

(1) Nothing in this Act shall apply to:

 

 

 

 


Attached File : 939976602 office of ca is not under se act.doc, 939976602 advocate solicitor office is not covered under se act sc judgement v. sasidharan vs peter & karunakar & ors on 23 august, 1984.pdf, 939976602 office of ca is not under se act.doc downloaded: 370 times

Kumar Doab (FIN)     29 December 2013

Attahed.

 

Pls keep this thread updated.


Attached File : 939976602 advocate solicitor firm is not under se act.doc downloaded: 185 times

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