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Taxation

After closure order from Madras HC, property tax remittance by Koyambedu shops touches Rs 1.36 crore in a single day

Thursday, 20 July 2017 00:00 administrator
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The Times of India          20.07.2017

After closure order from Madras HC, property tax remittance by Koyambedu shops touches Rs 1.36 crore in a single day

Koyambedu market in Chennai
CHENNAI: Property tax payment to the tune of Rs 1.36 crore poured into the coffer of the Chennai Corporation in a single day from the shop owners in Koyambedu market, after the Madras high court ordered closure of 729 defaulting shops.

On Tuesday, Justice N Kirubakaran censured the higher officials of the corporation for "deliberately failing" to collect property tax to the tune of Rs 2.48 crore for the shops in Koyambedu market and directed the authorities to seal 729 defaulting shops.

The judge passed the interim order on a plea moved by the shop owners assailing the property tax demand made by the corporation from 1996 to 2015.

After the news broke about the closure order, defaulting shop owners started remitting the tax arrears which totalled Rs 1.36 crore in a single day.

When the plea came up for hearing on Thursday, the authorities filed a report on the developments and submitted that they have also sealed 39 shops which were still found to be defaulting tax payment. The officials sought some more time for further action.

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We need many Judges in line with Judge Kirubakaran of Chennai High Court. Interim closure order of 729 shops at Koyambedu for non payment of tax to City Corporation. The Judge proclaimed that the civ... Read MoreA Xavier

Recording the submissions, the judge adjourned the hearing by a week.

During earlier hearings, the judge also pulled up the officials for not revising the tax since 1998 despite the fact that the City Municipal Corporation Act, 1919 mandates such revision once in four years.
 

Chennai Corporation hikes rent for shops

Thursday, 22 June 2017 10:24 administrator
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The Hindu         22.06.2017  

Chennai Corporation hikes rent for shops

Traders have appealed to civic body saying the hike is 9-10 times in some areas

The Chennai Corporation has increased rental rates for shops as per market value across the city.

Traders have started appealing to the Corporation to reduce the rent, claiming that the rates have been raised nine to ten times in some areas.

A few years ago, the Corporation started increasing rental rates for its shopping complexes. Based on recommendation by the Corporation’s Revenue Department, initiatives were made to increase the rent.

Based on market value

The department sent a circular to revise the rent in all zones based on market value this year.

For example, in Ward 35, Muthamizh Nagar, traders in each of the 94 shops pay a rent of Rs. 11 per sq ft.

As per the market value, the rent is expected to be fixed at Rs. 20 per sq ft. In Ward 39, Suryanarayana Street, new shops have a rental value of Rs. 30 per sq ft. Rent for Corporation shops in Mottai Thottam in Ward 48 has been revised from Rs. 7 to Rs. 25 per sq ft.

After every three years, the corporation revises the rent for shops.

After completion of nine years, traders will get an opportunity to extend the lease by another nine years. In case the trader refuses to accept the revised rate, the shop would be auctioned.

The Chennai Corporation owns around 5,800 shops in the 15 zones of the city.

 

Buildings to be checked for tax violation

Thursday, 08 June 2017 12:04 administrator
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The Hindu        08.06.2017   

Buildings to be checked for tax violation

Chennai Corporation’s new initiative

Residents and traders who have constructed unauthorised buildings are under the scanner, as the Chennai Corporation has taken yet another initiative to trace property tax revenue loss.

Three areas

Starting Wednesday, the Corporation will send teams to inspect a total of 8,747 buildings in ward 57 in George Town, 10,414 buildings in ward 136 in T.Nagar and 6,076 buildings in ward 173 in Mylapore, measuring the structures, compiling data on total built up area and other town planning parameters.

The data will be compared with the database of the Chennai Corporation Revenue Department that collects property tax, trace licence and company tax. “The data on additional floors or unauthorised construction will be used to estimate the actual revenue loss of property tax. Under-assessment of property tax remains a challenge. Many homes and commercial buildings are paying less tax, causing huge loss of revenue,” said an official.


GIS mapping

As part of the initiative, the Chennai Corporation will also use GIS mapping of the private buildings on Wednesday, in addition to survey by the teams.

The GIS mapping will also cover all the private property and civic utilities. Even as the drive is done for increasing tax revenue, this initiative is expected to generate huge data sufficient to expose the exact number of unauthorised buildings in the city after the completion of the project,” said an official.

 
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