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- GST department recovers Rs 10.4 crore from six Nagpur, Nashik builders
After action against builders, the Directorate General of Goods and Service Tax Intelligence (DGGSTI) has fixed liability of Rs 10.40 crore against six real estate companies, five from Nagpur and one in Nashik.Shishir Arya | TNN | September 20, 2019, 15:30 IST
NAGPUR: After action against builders, the Directorate General of Goods and Service Tax Intelligence (DGGSTI) has fixed liability of Rs 10.40 crore against six real estate companies, five from Nagpur and one in Nashik.
During the searches digital data was retrieved from the firms’ devices and compared with the physical copies of sale deeds filed at the registrar’s office. A discrepancy was found in the amount of GST liability discharged as against the price of the flats sold.
Before flats came under 5% composition scheme, 12% GST was charged if the property was sold before the builder obtained an occupancy certificate. It was seen that despite not having got occupancy certificate, the 12% GST was not paid for a number of flats.
The action covered M/s Green City Builders, M/s Kukreja Infrastructure, M/s Pardeshi Construction Private Limited, M/s Kukreja Embassy, and M/s JD Buildcon Private Limited from Nagpur, and M/s Sanklecha Construction Private Limited from Nashik.
Tax to the tune of Rs 4.52 crore has been received from the firms. M/s Green City Builders paid Rs 58.17 lakh against liability of Rs 2 crore, M/s Pardeshi Construction paid Rs 15 lakh against Rs 1.35 crore, M/s Kukreja Embassy paid Rs 17.50 lakh (with ITC set off of Rs3.40 lakh against a liability of nearly Rs 4.86 crore) and M/s JD Buildcon paid Rs 21 lakh against a liability of Rs40 lakh, said a press release.
- Bombay HC quashes Akola civic body’s property tax policy
The 2017 resolution resulted in property owners paying taxes multiple times their previous years’ dues and this ultimately led to an Akola resident filing a petition before the Nagpur bench of Bombay HC.TNN | Updated: October 10, 2019, 12:21 IST
NAGPUR: In a major decision which is likely to have a state-wide impact, the high court on Wednesday quashed a 2017 resolution of the Akola Municipal Corporation (AMC) which determined the mode and manner in which property tax was to be assessed for a five-year period.
The 2017 resolution resulted in property owners paying taxes multiple times their previous years’ dues and this ultimately led to an Akola resident filing a petition before the Nagpur bench of Bombay HC.
Advocate Shreerang Bhandarkar, counsel for the petitioner, challenged the methodology by which AMC had arrived at new assessment values.
In its 58-page judgement, the bench, presided by justice RK Deshpande and justice Vinay Joshi, noted that the resolution passed by AMC was “totally arbitrary, unreasonable and not based upon any valid relevant criteria”. The court also mentioned that AMC failed to “substantiate the fixation of annual rent in respect of the properties for residential and non-residential purposes on the basis of the provisions of the Act and the Rules”.
The court questioned the process by AMC to collect information related to the annual rent separately for residential and non-residential premises. The order stated that “no efforts are made to determine the fair or standard rent for such properties. No material is collected to determine the annual letting value on the basis of the comparable properties in the municipal area”.
The court also raised questions on a 2016 survey done by a private agency, on behalf of AMC, with one of the purpose being to determine whether a property has been let out or not.
Regarding this the HC order states “the survey is conspicuously silent in respect of the amount of annual rent for which such property might reasonably be expected to let from year to year. There is no inquiry in respect of fair or standard rent of the properties”.
However, there is no stay on the tax collection process. The court’s order mentions that AMC can “go ahead with the recovery of the said tax as a stopgap arrangement, subject to adjustment of the amount, if any, recovered in excess towards the recovery of tax, which shall be levied in accordance with law”.
The court has now ordered AMC to start a fresh process for property tax assessment and complete the same within a year. If this deadline is breached, then property rates prevailing during 2002-2017 shall be collected till the new system is in place.
- Consumer forum slaps Rs 10 lakh fine on Nagpur's Pankaj Constructions
Complainants Vidya and Shyam Baniya, a resident of Tanga Stand in Dharampeth, used to run a small shop in an old building.Vaibhav Ganjapure | TNN | November 05, 2019, 11:00 IST
NAGPUR: Coming to the rescue of woman and her close relative, the Nagpur District Consumer Forum imposed a heavy cost of Rs 10 lakh on the builder for taking away her only means of survival and for physical and mental harassment. It is one of the biggest fines in the forums’ history, as per the lawyers practising there.
A bench headed by president Shekhar Muley and members — Smita Chandekar and Avinash Prabhune — also ordered builder, Pankaj Constructions, through proprietor Pankaj Roshan Dhawan, to refund Rs 1.89 lakh, which they paid as down-payment with 12% interest from 2012. The builder was told to pay the entire amount within a month of the order or else, a surcharge of Rs 50 per day would be levied on him. The judges absolved of other respondents for lack of evidence against them.
Complainants Vidya and Shyam Baniya, a resident of Tanga Stand in Dharampeth, used to run a small shop in an old building. The builder took over the scheme for redevelopment and assured to provide a 100sqft shop in his new scheme Gokul Roshan at Mouza Gadge. Complainants then entered into an agreement with the builder for a new shop on July 12, 2012. The deal was inked for Rs 7.56 lakh and complainants paid first instalment of Rs1.89 lakh while remaining amount of Rs 5.67 lakh was agreed to be given in instalment.
Even after four to five years when the builder failed to lay any brick of his new scheme where he provided a shop to Baniya family, the latter started demanding their money back. When they investigated, they came to know that builder had failed to get the sanction from authorities to construct the building, as he failed to comply with the rules and regulations. They even sent notices to Dhawan and other respondents, demanding back their money, but he failed to respond.
Left with no other alternative, the complainants knocked forum’s doors while seeking refund of their amount and demanding Rs4,000 per month compensation from the builder as agreed between both parties in their first agreement for purchase of shop.
The builder replied that Baniya filed complaint after six years of inking of agreement in 2012 and hence, it couldn’t be entertained as per rules. He claimed that it was frivolous complaint as Baniya failed to pay rest of amount of Rs5.67 lakh after making down payment of Rs1.89 lakh.
The judges rejected his arguments stating that builder adopted unethical practices while inking deal with the complainants and there was indeed “deficiency in service” on his part by not honouring commitment to provide a shop to them.
- NSSCDCL compensates owners after houses razed for Nagpur smart city project
The monetary compensation will be deposited in the accounts of house owners in three installments.TNN | November 15, 2019, 16:30 IST
NAGPUR: The Nagpur Smart and Sustainable City Develop Corporation Limited (NSSCDCL) has paid compensation to owners of houses which were razed in areas — Pardi, Bharatwada, Punapur and Bhandewadi — proposed under the Smart City project.
Seven houses were affected near Bhavani Mata Mandir. Six of them were razed and the occupants shifted to rented accommodations. The rent will be paid by Nagpur Municipal Corporation (NMC). The compensation includes providing a developed plot having an area equal to 60% of the original plot and a house having equal area to the one demolished.
The monetary compensation will be deposited in the accounts of house owners in three installments. The first installment will be deposited as soon as the owners sign a letter of agreement on a stamp paper and submit it to the NMC.
The second installment will be deposited when the house is razed. The owners will get the third one when they submit a clear title document (NA document and city survey record). So far, Rs one crore has been deposited in the accounts of house owners.
- About 4.43 lakh people owe Rs 470 crore property tax to Nagpur civic body
According to the data compiled by the department, property owners in Laxmi Nagar zone owe NMC more than Rs 107.19 crore.TNN | November 26, 2019, 19:00 IST
NAGPUR: As many as 4.43 lakh Nagpurians collectively owe Nagpur Municipal Corporation Rs 470 crore towards property tax, reveals data compiled by NMC’s property tax department. The accumulated property tax dues were calculated for the last 10 years.
In the last financial year (2018-19), of the 5.31 lakh property owners, only 3.22 lakh have paid property tax to the tune of Rs 198.26 crore.
According to the data compiled by the department, property owners in Laxmi Nagar zone owe NMC more than Rs 107.19 crore.
The highest number of property tax defaulters (79,222) is from Ashi Nagar zone, with Rs 65.98 crore dues. It is followed by Lakadganj zone (59,914), where such owners have collectively defaulted on Rs 64.86 crore. These owners haven’t paid tax for a period ranging between more than five to 10 years.
Similarly, in Mangalwari zone, 44,192 property owners have not paid the tax and they too owe NMC Rs 55.88 crore. Dhantoli zone has lowest number of defaulters. It has around 7,760 property owners as defaulters and collectively their arrears amount to Rs 31.59 crore. Amount-wise, Gandhibagh zone has least tax dues where 11,579 property owners have not paid tax to the tune of Rs 9.41 crore.
Sources in the NMC’s accounts and finance department admitted that the civic administration needs to improve property tax collection as it is a main source of revenue generation for the civic body.
Assistant municipal commissioner Milind Meshram said the civic body has taken several initiatives to improve tax collection and giving ample opportunities to the defaulters to clear the dues.
He also said that many property owners have defaulted on the tax after raising objections in the calculations, while many big defaulters have moved court against the department. The department needs to speed-up the process to settle such objections, he admitted and stated that the department has asked zone offices to accelerate such pending cases.
To a query that the department is only auctioning properties of small tax defaulters, Meshram refuted the allegation stating that the civic body is focusing more on big defaulters.
- Stamp duty reduced by 0.5% in Nagpur
An official from stamps and registration department said stamp duty is now 7% as against 7.5% with effect from December 1. “It has been done as per orders of stamps collector AS Ughde,” the official said.Anjaya Anparthi | TNN | December 07, 2019, 12:00 IST
NAGPUR: In some relief for property buyers, builders and developers, the stamps and registration department has reduced stamp duty in the city by 0.5%, which was being recovered for Nagpur Improvement Trust (NIT) for the last 83 years.
However, the decision is a major setback for the cash-strapped Nagpur Municipal Corporation (NMC), as it is yet to get the revenue from this even though it has taken over all areas of NIT.
An official from stamps and registration department said stamp duty is now 7% as against 7.5% with effect from December 1. “It has been done as per orders of stamps collector AS Ughde,” the official said.
In a letter, Ughde said, “There was provision in section 77 of the NIT Act 1936 for recovering 0.5% stamp duty from all transactions in areas coming under NIT’s jurisdiction. The state government through a notification dated August 27 had handed over all NIT areas, especially seven schemes, to NMC. Thus, NIT has no areas under its jurisdiction. Therefore, the stamp duty being recovered for NIT needs to be stopped.”
The stamps and registration department used to collect 0.5% stamp duty from all transactions across the city and hand it over to NIT. After some court orders, the department started to recover stamp duty from areas under NIT jurisdiction only. NIT used to get around Rs 12.50 crore per annum.
The reduction in stamp duty is good news for property buyers, builders and developers, as it was one of the highest in the state.
The government had handed over all areas of NIT to NMC with effect from August 27, as per provisions in NIT Act. Areas transferred by NIT to NMC are mostly unauthorized and under-developed. This is being seen as a big financial burden on NMC, which is already reeling under a financial crisis. But the civic body has not got the stamp duty collected for NIT.
Municipal commissioner Abhijit Bangar told TOI he would pursue the issue with the government. “I will have to check under which provision NIT was getting stamp duty, and whether it can be transferred to NMC. If possible, we will leave no effort to get it as we need new revenue source especially for areas taken over from NIT,” he said.
NMC is also getting stamp duty of 1% since abolition of octroi in April 2013.
Basic stamp duty is 5% of total value of property. The government had imposed 0.5% stamp duty for NIT, another 1% for NMC and another 1% for Metro Rail Project. Thus, stamp duty in the city was 7.5%.
- Rainwater harvesting likely to be must for buildings of various institutions in Nagpur
The committee was constituted by mayor Sandip Joshi after taking cognisance of the water scarcity that prevailed during last summer and early days of monsoon.Anjaya Anparthi | TNN | December 09, 2019, 16:30 IST
NAGPUR: The Nagpur Municipal Corporation (NMC) is likely to make rainwater harvesting mandatory for all buildings owned and run by institutions. It is the first step proposed by the Rainwater Harvesting Committee.
The committee was constituted by mayor Sandip Joshi after taking cognisance of the water scarcity that prevailed during last summer and early days of monsoon. The committee held a meeting at the NMC head office a couple of days ago.
Committee members Abhay Gotekar, chairman of projects consultative committee, Vijay Zalke, chairman of water works consultative committee, superintending engineers Manoj Talewar (NMC), PP Dhankar (NIT), executive engineer Shweta Banerjee, assistant director of town planning Pramod Gawande, architect Ashok Mokha, geologists Varsha Mane, RK Deshkar, teacher Rohit Deshpande and others were present.
The committee directed the NMC officials to prepare administrative provisions to make rainwater harvesting mandatory for all buildings run by government departments, educational institutions, hospitals and private organizations.
The committee also decided to chalk out plans for public awareness and implementation of rainwater harvesting system in other buildings in a phased manner.