It’ll be CVS for new properties

It’ll be CVS for new properties
TIMES NEWS NETWORK

Bangalore: New properties and unassessed buildings will come under the new property tax regime — Capital Value System (CVS). However, existing tax-payers will continue under the old Self-Assessment Scheme (SAS). The BBMP has now opened up its second half-yearly tax collections — from October 1 to November-end.
The BBMP, dilly-dallying over CVS for sometime, finally decided to launch the scheme after BBMP administrator Dilip Rau approved it on Thursday.
The CVS is calculated on the basis of land and building dimensions and by applying the rates fixed by the government. The existing SAS follows Annual Rental Value, where the tax is calculated on the gross rent collected by the building owner.
“We had to switch over to CVS as the KMC Act was amended in 2004 but not enforced. However, those who have already paid tax or are assessed will continue to pay under the SAS,’’ BBMP commissioner S Subramanya told The Times of India.
The BBMP is likely to bring all properties under CVS from April 1 2008. Till now, the BBMP had assessed around 6.5 lakh properties and this figure will swell to around 10 lakh. Additional commissioner, finance, Sandeep Dash said taxes will go up by 10% for individual residential properties, while it will go down by 15% for apartments as the cost of the land and plinth area are taken into consideration. Taxes will be reduced for high-rise commercial buildings.
The new properties will have to pay tax after three months of the resolution being notified. Those who pay within a month of the notification will get a 5% rebate.
How CVS works
It is based on the guidance value of land fixed by stamps and registration dept and cost of building as per PWD rates. Depreciation, health cess will be included and calculated as per capital value fixed.
Capital value: residential 0.5%, commercial 2%, industrial 1% and vacant lands 0.2%.
Tax regime
Bruhat Bangalore Mahanagara Palike BMP, existing areas: SAS (ARV)
New properties: CVS will be introduced
Erstwhile CMCs/TMCs and villages added to BBMP: CVS