• January 3, 2018
  • Om Vyas
The object of the Maharashtra Tax on Buildings (with Larger Residential Premises) Acts 1979 is to levy a tax so that there is a check on extravagant use of available living space, particularly residential accommodation. This tax is a source of revenue for the State Government. Initially there was a separate Act i.e. Maharashtra Tax on Residential Premises Act, 1974. In a case filed in the Bombay High Court i.e. Miscellaneous Petition No. 214 of 1978 Rajab Mahal Co-operative Housing Society Ltd. v/s State of Maharashtra & Others it was held that the Maharashtra Tax on Residential Premises Act, 1974 providing uniform rate of tax for premises situated in any corporation area was in contravention of Article 14 of the Constitution of India and therefore the said Act was null and void. Therefore, a situation had arisen whereby the State Government would lose revenue of lakhs of rupees and substantial amounts earlier collected under 1974 Act might have had to be refunded. Therefore to maintain continuity and with a view to not refund the tax collected earlier, a new Act which was free from the defects pointed out by the Bombay High Court in the abovementioned Judgement was re-enacted. It may be emphasized that the new Act was specifically drafted in such a way that recovery would be made since 1st April, 1974 though the re-enacted Act came into existence from 1979. The tax is payable in Corporation areas of the State of Maharashtra excluding Greater Bombay @ 10% of the Rateable value of Residential Premises, if the rateable value exceeds Rs.1,500/- (Rupees One thousand five hundred only) and the floor area is of more than 150 sq.metres. If the property is in Greater Bombay the tax is payable @ 10% of the Rateable Value of Residential Premises if the rateable value of the premises exceeds Rs.1,500/- (Rupees One thousand five hundred only) and the floor area of the premises is of more than 125 sq.metres Courtesy: www.legalpundits.com
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