Real-estate developers in Mumbai will have to pay three years' advance property tax to the Municipal Corporation of Greater Mumbai for taking up new projects.
it can increase the cost of apartments in the commercial capital. This move comes against the backdrop of Rs6000 crore that builders, housing societies and commercial establishments owe in tax arrears to the Corporation.
As per the Maharashtra Minister of State for Urban Development, Mr Bhaskar Jadhav, the decision has been taken so that tax arrears don't get built up. In many cases builders don't inform apartment buyers about unpaid property taxes. Once the apartment gets sold, the new owner gets saddled with a huge tax liability.
Mr.Jadhav said a new policy to tackle the issue of unpaid taxes will be formulated by the State Government. However, he did not specify a deadline for the payment of the property tax.
View: If the new advance tax gets implemented, then the property costs across Mumbai will increase as builders will pass on the cost to customers. Until the apartment is handed to the new owner, the developer is responsible for the payment of property tax. However, many builders take money as advance tax from the new owners but don't pay it to the Corporation. This is a fraudulent behaviour on the builders part.
....more info
it can increase the cost of apartments in the commercial capital. This move comes against the backdrop of Rs6000 crore that builders, housing societies and commercial establishments owe in tax arrears to the Corporation.
As per the Maharashtra Minister of State for Urban Development, Mr Bhaskar Jadhav, the decision has been taken so that tax arrears don't get built up. In many cases builders don't inform apartment buyers about unpaid property taxes. Once the apartment gets sold, the new owner gets saddled with a huge tax liability.
Mr.Jadhav said a new policy to tackle the issue of unpaid taxes will be formulated by the State Government. However, he did not specify a deadline for the payment of the property tax.
View: If the new advance tax gets implemented, then the property costs across Mumbai will increase as builders will pass on the cost to customers. Until the apartment is handed to the new owner, the developer is responsible for the payment of property tax. However, many builders take money as advance tax from the new owners but don't pay it to the Corporation. This is a fraudulent behaviour on the builders part.
....more info