The Property Tax in Haryana is governed by Haryana Municipal Corporation Act, 1994. Below is the Gist of Provisions applicable on the property taxes pursuant to which the Tax is levied and collected on Land & Buildings.
Section 87(1)(a) :- “a tax payable by the owner on buildings and lands which shall not be less than two and a half per centum and more than fifteen per centum, as the State Government may, by notification direct, of the annual value of such buildings and lands,”
Hence the Property tax is payable on Annual Value of Buildings and Lands. Two Important Questions arise.
Who is Liable to Pay?
As per above provisions, the owner is liable. The Term Owner is defined as under:-
Section 2(36) defines ‘Owner’ as:-
(a) when used with reference to any building and land, includes –
(i) the person who receives the rent thereof or who would be entitled to receive the rent thereof if the same were let;
(ii) an agent or trustee who receives such rent on account of the owner;
(iii) an agent or trustee who receives the rent of or is entrusted with or concerned for, any premises devoted to religious or charitable purposes;
(iv) a receiver, or manager, appointed by any court of competent jurisdiction to have the charge of, or to exercise the rights of an owner of the said premises;
(v) a mortgage in possession;
Author’s Note :- Hence the criterion in the Act is to tax the person who is broadly entitled to receive rent. Because of this in case of tussle between the Builder and the customer, the clauses in the BBA can be referred to, to decide since when the customer gets the entitlement to receive the rent and only after that stage can the customer be deemed to be the owner of the Building.
When the Liability Accrues in Respect to Building
Section 102 :- When any new building is erected or when any building is re-build or enlarged or when any building which has been vacant is re-occupied, the person primarily liable for the taxes specified in section 89 assessed on the building, shall give notice thereof in writing to the Commissioner within fifteen days from the date of its completion or occupation, whichever first occurs or, as the case may be, from the date of its enlargement or re-occupation; and the said taxes shall be assessable on the building from the said date.
Author’sView :- The Liability in regard to Building shall only accrue from the time of OC or CC whichever is earlier
