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KERALA BUILDING TAX (AMENDMENT) ACT, 1992

KERALA BUILDING TAX (AMENDMENT) ACT, 1992

KERALA BUILDING TAX (AMENDMENT) ACT, 1992

Preamble - KERALA BUILDING TAX (AMENDMENT) ACT, 1992

THE KERALA BUILDING TAX (AMENDMENT) ACT, 1992

[Act No. 03 of 1992]

PREAMBLE

An Act further to amend the Kerala Building Tax Act, 1975.

Whereas it is expedient further to amend the Kerala Building Tax Act, 1975, for the purposes hereinafter appearing;

BE it enacted in the Forty-third Year of the Republic of India as follows:-

 

Section 1 - Short title and commencement

(1)     This Act may be called the Kerala Building Tax (Amendment) Act, 1992.

 

(2)     Section 4 shall come into force on such date as the Government may, by notification in the Gazette appoint and the remaining provisions of this Act shall be deemed to have come into force on the 10th day of February, 1992.

Section 2 - Amendment of section 2

In the Kerala Building Tax Act, 1975 (7 of 1975) (hereinafter referred to as the principal Act), in section 2,-

(i)       for clause (a), the following clause shall be substituted, namely:-

"(a) 'Appointed day' means such date as the Government may for the purpose of this Act, specify by notification in the Gazette.".

(ii)      clause (f) shall be omitted.

(iii)     in clause (g), after the words "cantonment board", the words "or a District Council;" shall be added.

 

(iv)    for clause (h), the following clause shall be substituted, namely:-

"(h) 'major repair or improvement' in respect of a building means a repair or improvement as a result of which the plinth area of the building is increased."

(v)      after clause (j), the following clauses shall be added, namely:-

"(k) 'plinth area' means the area included in the floor of a building and where a building has more than one floor the aggregate area included in all the floors together:

Provided that in the case of a building referred to in the Explanation 2 to clause (e), the plinth area shall be calculated Separately.

(l) Residential building means a building or any other structure or part thereof built exclusively for residential purpose including out-houses of garages appurtenant to the building for the more beneficial enjoyment of the main building but does not include hotels, boarding places, lodges and the like."

 

Section 3 - Amendment of section 3

In the principal Act, in sub-section (2) of section 3, for the words, figure and bracket, "under sub-section (1)" the words, figures and bracket "under sub-section (1) or under section 3A" shall be substituted.

 

Section 4 - Amendment of section 3A

Section 3A of the principal Act shall be renumbered as sub-section (1) of that section and the following sub-section shall be added after sub-section (1) as so renumbered, namely:-

"(2) The Government may, if they consider it necessary so to do, by notification in the Gazette, make exemption from the payment of building tax either wholly or party in respect of any building or buildings constructed utilising the grant of the Central Government or the State Government, where such grant is not less than twenty-five per cent of the total cost of construction of the building and such building is intended for such purposes as may be prescribed subject to the condition that the building tax if any, already paid shall not be refunded or otherwise adjusted."

 

Section 5 - Insertion of new section 3B

After section 3A of the principal Act, the following shall be inserted as section 3B, namely:-

"3B. Misuse of exemption by the assessee.-

Where any building which has been exempted from payment of building tax under the provisions of this Act, is found to be used in any manner which would nullify the eligibility for exemption, the owner shall be liable to be assessed and to pay building tax under this Act together with penal interest at the rate of 12% per annum from the date of completion of construction of the building;

Provided that no such assessment shall be made without giving the assessee a reasonable opportunity of being heard."

 

Section 6 - Substitution of new section for section 5

For section 5 of the principal Act the following section shall be substituted, namely:-

"5. Charge of building tax.-

(1)     Subject to the other provisions contained in this Act, there shall be charged a tax (hereinafter referred to as "building tax") based on the plinth area at the rate specified in the Schedule on every building the construction of which is completed on or after the appointed day.

 

(2)     In the case of any building the construction of which is completed prior to the appointed day, the assessee shall be liable to, pay the building tax as if the Kerala Building. Tax (Amendment) Act, 1992 has not come into force, provided, however, that if the assessment is not initiated or completed in such cases before the appointed day the assessee may by application in writing addressed to the assessing authority opt to be governed by the provisions in sub-section (1) within such period as the Government may specify in this behalf and thereupon the assessee shall be liable to pay the building tax as if the construction of the building is completed on or after the appointed day.

 

(3)     Where any major repair or improvement is made on or after the appointed day to a building constructed before the said date building tax shall be payable at the rate referred to in sub-section (1) on the additional plinth area of the building resulting from such repair or improvement.

 

(4)     Where the plinth area of the building, the construction of which is completed after the appointed day is subsequently increased by new extensions or major repair or improvement, building tax shall be computed on the total plinth area of the building including that of the new extension or repair or improvement and credit shall be given to the tax already levied and collected, if any, in respect of the building before such extension, or repair or improvement.

 

(5)     Where there are out-houses, garages or other structures appurtenant to the building for the more convenient enjoyment of the building, the plinth area of such structure shall be added on to the plinth area of the main building and the building tax assessed accordingly.

 

(6)     The building tax shall be payable by the owner of the building.

Explanation.-For the purposes of this Act, the construction of a building shall be deemed to have been completed when it is ready for occupation or has been actually occupied, whichever is earlier."

Section 7 - Substitution of new section for section 6

For section 6 of the principal Act, the following section shall be substituted, namely:-

"6. Determination of plinth area.-The plinth area of a building for the purposes of this Act, shall be the plinth area of the building as specified in the plan approved by the local authority or such other authorities as may be specified by Government in this behalf and verified by the assessing authority in such manner as may be prescribed."

 

Section 8 - Amendment of section 7

In section 7 of the principal Act,

(i)       for Sub-section (1), the following sub-section shall be substituted, namely:-

"(1) The Owner of every building the construction of which is completed, or to which major repair or improvement is made on or after the appointed day shall furnish to the assessing authority a return in the prescribed form within the prescribed period along with a copy of the plan approved by the local authority or such other authorities as may be specified by the Government in this behalf and verified in the prescribed manner and containing such particulars as may be prescribed."

(ii)      sub-section (2) shall be omitted.

 

Section 9 - Amendment of section 13

In section 13 of the principal Act, after sub-section (3), the following sub-section shall be added, namely:-

"(4) No application for revision under sub-section (1) by an aggrieved party shall lie unless fifty per cent of the building tax has been paid."

Section 10 - Omission of section 16

Section 16 of the principal Act shall be omitted.

 

Section 11 - Amendment of section 18

Section 18 of the principal Act shall be renumbered as Sub-section (1) of that section and the following sub-section shall be added after sub-section (1) as so renumbered, namely:-

"(2) Issue of completion certificate or assignment of building number or door number shall be done by the local authority on production of satisfactory proof of remittance of the entire amount of building tax due in respect of that building:

Provided that in the case of buildings eligible for exemption under this Act, the certificate of exemption issued by the assessing authority shall be sufficient for the issue of completion certificate and assignment of building number or door number."

 

Section 12 - Amendment of section 23

In sub-section (1) of section 23 of the principal Act, after the words "in this behalf" the words "either suo motu or on application by the assessee", shall be inserted.

 

Section 13 - Amendment of section 26

In section 26 of the principal Act, for clause (a) of sub-section (2) the following clause shall be substituted, namely:-

"(a) the determination of plinth area of the buildings and the plinth area of major repairs and improvements to the buildings."

 

Section 14 - Substitution of new Schedule

In the principal Act for the Schedule the following Schedule, shall be substituted, namely:-

"The Schedule

(See Section 5)

Rate of Building Tax

Plinth Area

Panchayat

(Rupees)

Spl. Grade Panchayat Municipalities (Rupees)

Corporation (Rupees)

(1)

(2)

(3)

(4)

Residential Buildings:

 

 

 

On the first 75 square metres

Nil

Nil

Nil

Above 75 square metres but not exceeding 100 square metres-

 

 

 

(i) In the case of buildings thatched by grass or leaves

Nil

Nil

Nil

(ii) In other cases

250

450

675

Above 100 square metres but not exceeding 150 square metres

500

900

1,350

Above 150 square metres but not exceeding 200 square metres

1,000

1,800

2,700

Above 200 square metres but not exceeding 250 Square metres

2,000

3,600

5,400

Exceeding 250 square metres

2,000 plus Rs. 400 far every additional 10 square metres

3,600 plus Rs. 800 for every additional 10 square metres

5,400 plus Rs. 1000 for, every additional 10 square metres

Other Buildings:-On the first 50 square metres

250

500

1,000

Above 50 square metres but not exceeding 75 square metres

500

1,000

2,000

Above 75 square metres but not exceeding 100 square metres

750

1,500

3,000

Above 100 square metres but not exceeding 150 square metres

1,500

3,000

6,000

Above 150 square metres but not exceeding 200 square metres

3,000

6,000

12,000

Above 200 square metres but not exceeding 250 square metres

6,000

12,000

18,000

Exceeding 250 square metres

6,000 plus Rs. 600 for every additional 10 square metres

12,000, plus Rs. 1200 for every additional 10 square metres

18,000 plus Rs. 1,500 for every additional 10 square metres.

Note.-

(1)     In the case of buildings referred to in the Explanation 2 to clause (e) of section 2, the rate of building tax shall be increased by 10%.

 

(2)     In the case of buildings certified by a competent authority such as Nirmithi Kendras and the like as may be specified by Government in this behalf to be low cost residential building, the rate of building tax shall be reduced by 25%".

Section 15 - Repeal and saving

(1)     The Kerala Building Tax (Amendment) Ordinance, 1992 (2 of 1992), is hereby repealed.

 

(2)     Notwithstanding such repeal, anything done or any action taken under the principal Act as amended by the said Ordinance shall be deemed to have been done or taken under the principal Act as amended by this Act.