Tax hike likely on serviced apartments

Tax hike likely on serviced apartments

Located mostly in Bommanahalli, Mahadevapura and Yelahanka zones of the BBMP, the service apartments will now be identified by the Palike to bring them in the commercial bracket. The Standing Committee on Taxation and Finance passed the resolution,  given that over 10,000 service apartments, which have been making profits over the past few years, have not paid dues.

 “The growing number of service apartments have been paying property tax in accordance with the slabs fixed for residential apartments. However, this time, the service apartments will come in the commercial bracket. This way, the Palike’s earnings will go up,” said an official.

 “Till date, we did not have the provision to inspect these buildings for identifying service apartments. By including them in the commercial bracket, we can go ahead with identifying  service apartments,” said the official.

The Standing Committee has recommended that service apartment offering basic amenities will be taxed a minimum of Rs 8 per sq ft. For the high-end service apartments with more luxuries, including air-conditioners, a higher rate of Rs 20 per sq ft has been proposed. The proposal will now be placed before the next BBMP Council session for its approval before it is sent to the Government.

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