Service charge

The state stipulates a service charge levied on the transfer

KOLKATA: the State Department responsible for urban development and municipal affairs has defined the service charge to be collected by local urban bodies (ULB) transferring land or buildings in the State.

“There was no standardized rate for the transfer of land or buildings. So ULB charged differently in the name of development charge/permission/other charges and this caused confusion among ordinary people. Now , all urban local governments will have to levy a fixed service charge depending on the nature of the building notified by the state government,” said a senior official from the municipal affairs department.

However, land or buildings whose annual valuation does not exceed Rs 500, located in slums, buildings/apartments constructed for the economically weaker sections by the state government, social care homes, shelters for the homeless shelters run by the state or local agency, any government-sponsored school or college, buildings used for public worship, etc. will be exempt from service charges. In case of transfer of land or building by inheritance or testamentary succession, if the annual value (AV) of the residential land or building is up to Rs 5000, the category A/B/C of the municipality may levy 15% of VA as service charge and 10% for municipality category D/E. For non-residential properties of the same category, 30% of the VA may be invoiced by the communities of categories A, B and C and 20% by categories D and E. In the event that the VA value of the land or building is more than Rs 5,000 for residences, 20% and 15% may be levied as a service charge by municipalities in categories A/B/C and D/E respectively. For non-residential, the service charge will be 40 and 30% of VA for these two categories. . by the Municipal Affairs Department. He also mentioned the service charges to be imposed for transfer by sale or otherwise such as lease, donation outside the family and also in case of deed of partition. In the case of municipal corporations when the transfer of land is by inheritance or testamentary succession, 15% and 20% AV respectively may be charged in case of residence whose AV is up to Rs 5000 and more than Rs 5000 respectively. For non-residential property, 30% and 40% of AV can be taxed for land or building up to Rs 5,000 and over Rs 5,000 respectively. act in the fields of municipal corporations was also notified.