Kerala act 019 of 1961 : The Kerala Buildings Tax Act, 1961 (No.19 of 1961)

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THE KERALA BUILDINGS :fAX ACT, Uil (Act 19 of 1961)

Preamble.

Sections.

CONTENTS

1. Short title, extent and commencemen~

2. Definitions.

3. .lhemptions.

4. Charge of buildings tax.

5. Computation of floorage of buildings.

6. Return of completion of newouildings.

7. Return after due date and amendment of return.

8. Assessment.

9. Notice of demand.

10 Appeals.

II. Re!erence to District Court.

12 Powers of revision of the District Collector .•

13. Rectification of IlllStake.

14. Power to take evidence on oath, etc.

15. Payment of buildmgs tax.

16. Mode and time of recovery.

17. Refunds.

18. LimitatiOn of claims for refund.

19. False statements m declaration.

20. Frulure to furnish return.

21. Pov.er of inspection.

22. Prosecutions.

23. Manner of service of notice.

24. Power to makerules.

25. Bar of suits in civil courts.

26. Compu tatlon of period of limitation.

27. Buildmgs tax not to be taken into account in fixing fair rent.

28. Removal of difficulties. The Schedule.

ACT 19 OF 1961

THE KERALA BUILDINGSTAX ACT, 1961"

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An Act to pro'Duie for the lel!J of a tax on buildings Preamble.-Whereas it is e~pedient to _provide .for the levy of a tax on buildings ,

BE it enacted in the Twelfth Year of the Republic·of India as follow~:-

1. Short title, extent and commeneement -(1) This Act may ·be called the Kerala Buildings Tax Act, 1961.

'* Published in the Gazette Extraordinary -dated _jOth lJ une, 1961.

(2) It extendsto the whole of the State ofK.erala.

(3) It shall be deemed to have come into force with effect on and from the 2nd day of march, 1961.

2. Definitions. In this Act, unless the context otherwise requires,-

(a) "appellate authonty" means the appellate authority appoin- ted by the Government ;

(b) "assessee" means a person by whom buildings tax or any other sum of money is payable under thts Act, and includes every person m respect of whom any p10ceeding under thll> Act ha~ been ·taken for the assessment of.butldings tax payable by him ;

(c) "assessing authority" means the ·assessing authority appoin- ted by the Government ,

(d) "building" means a house, out-house, garage, or any other structure, or part thereof, whether of masonry, bricks, wood, metal, or other roatenal, but does not include any portable shelter or any shed constructed principally of mud, bamboos, leave'>, grass or thatch or a latrine whtch ts not attached to the main su·ucture ;

(e) "floorage" means the area mcluded m the floor of a build- ing, and, where a building has more than one floor, the aggregate area included in all the 'floors together ;

(f) "owner" mcludes a pet son who for the time being is Teceiving 01 is entitled to recetve, the rent of any bUilding whether on his own account or on account of hmuelf and other~ or an agent, trustee, guardian or receiVer for any other pe1son or who should so receive the rent or be entitled to recetve it tf the building or part the1 eof were let to a tenant;

(g) "prescribed" means prescribed by rules made under this Act.

3. Exemptzons.-( I) Nothing m this Act shall apply to-

(i) buildings owned by the State Government, the Central Government or any local authority ; and (it) buildings used principally for religious, charitable or edu- catlOnal purposes or as factories or workshops. Explanatwn .-''Charitable purpose" mclu~es relief of the poor and medical relief.

(2) If any question arises as to whether a building falls under sub- :.ection ( 1), it shall be referred to the Government, and the decision of the Government thereon shall be final and shall not be called in question in any court of law. Before the Government decides the question, interested parties shall be given an opportunity to present their case.

4. Charge of buzldtngs tax.-( 1) Subject to the other provisxons con- tamed in this Act, there shall be charged a tax (hereinafter referred to as "buildmgs tax") at the rate specified in the Schedule, in respect of every building the construction of which is completed on or after the 2nd day of March, 1961 and which has a flomage of one thousand square feet or more.

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• (2) The butldings tax shall be payable by the owner of the bmld· mg.

Explanation 1.-For the purposes of this section, the construction of a bu1lding shall be deemed to have been completed when it JS ready for occupation or has been actually occupied, whichever is earlier. Explanahotz 2.-A building, wh1ch is not liable to be taxed under the provisiOns of thi~ Act on account of its havmg a floorage of less than one thousand bquare feet, shall become liable to be so taxed If the floorage of the building 1s subsequently increased to one thousand square feet or more as computed in the manner specified in section 5, by new coru.truct1ons or additioru. or combinations. Explanation 3.-Where the flomage of a bu;lding, which has already been taxed, IS subsequently increabed by new extenswns 01 additions or combinations, tax shall be computed on the total floorage of the building including that of the new extensiOns or additions or combin· ations, and credit shall be given to the tax already levied and collected in respect of the building before 'luch extensions or add1t10ns or com- bmations.

5. Computatzon of floorage of buzldwgs.-In computing the floorage of a building for purposes of assessment under this Act, the following pro- visions shall apply, namely :-

( l) Where a buildmg has only one floor, the floorage shall be the total area occupied by the basement of the build mg.

(2) Where a buildmg has more than one floor, the floorage shall be the aggregate oft he area occup1ed by the basement of the building and the areas covered by each of the floors above the basement.

(3) Where there are out-how,es, garages, or other l>tructures appur- tenant to the main building, the Boot age of such structures shall be computed in the manner specified m clauses (I) and (2), and the floorage so obtained shall be added on to the floorage 0f the main building.

6. Return of completwn of new buzldmgs .-( l) The owner of every buildmg havmg a floorage of one thousand square feet or more the con- struction of wh1ch has been completed on or aft.!r the 2nd day of March, 1961, shall furmsh to the assessing a!-lthonty a return m the prescr,bed form and verified in the prescribed manner and containing such parti- culars in respect of the buildmg as may be prescribed.

(2) Such return shall be furnished.-

(i) m the case of buildmgs the constructiOn of which has been t-ompleted before the publication of th1s Act m the Gazett(', Within three months ofsuch publicat10n; and

(ii) in the case of bmldings the construction of which has been completed after ~uch publication, within two months from the date on wh1ch the comtruchon of the buildmg has been completed.

(3) If the assessmg authonty IS of opmwn that any person has completed the construction of a buildmg having a floorage of one thousand square feet or more after the 2nd day of March, 1961. then, notwith~tanding anyth!llg con tamed in sub-section ( 1 ), it may serve a notice upon the owner ofliuch building reqwring him to furnish within

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such period, not being, less than thirty days as may be spec1ed in the

notice, a return •n the prescribed form and verified m the prescnbrd manner and containing such particulars m respect ofthe building as may be 1eqmred m the notice.

(4) Tl1e assessing authonty may, if 1t IS statisfie:l that it IS nece~- sary so to do, extend the date for the furnishing of the return under t 1 is sectJOn.

i Return after due dat~ and amendme11t of retum.-If any person has not furnbhed a return Withm the time allowed by or under section 6, or havmg furnished a return under that section d1scovers any om1))Sion or a wrong statement therem, he may furnish a return or a revised return, as the case may be at afly time before the assessment is made

8. Assessment -(I) If the assess!llg authonty IS satisfied that a return made under sectiOn 6 IS correct and complete, It shall determme the ftomage of the buildmg and asses:. the amount payable by him as bUll- dings tax on the bas1s of the retm n.

(2) If the assessing authonty is not ~o 3atisfied, 1t shall serve a not1ce on the assessee either to attend 111 person at its office on a date to be SpeCified in the notiCe orrto produce OI came tO be produced on :hat date any evidence on which the assessee may rely in support of his return. ·

(3) The assessing authority, after hearmg such evidence as the assessee may produce and such other evidence as 1t may require on any specified point and after conductmg such enqUires or inspection as it may consider necessary, shall, by onier in wnting, determme the floorage of the building and ao;sess the amount payable by him as buil- dings tax.

(1) For the purpose of making an assessment under this Act, the

assessing authonty may serve, on any person who has made a return under sub-sectiOn (I) of sectiOn 6 or upon whom a notice has been served under sub-sectiOn (3) of that section, a notice requirmg him to produce or cause to be produced on a date specified in the notice such records or other documents a~ the as~essing authority may require,

(5) If any person fa1ls to make a return m response to any notice under sub-section (3) of sectiOn 6, or fails to comply wlth the terms of any notice issued under sub-section (2) or sub-section (4), the assessing authority shall determme the floorage of the building to the best of its judgment and assess the amount payable by the person as buildmgs tax.

9. Nottce of dema11d -When any buildmgs tax is due in consequence of any order passed under or m pursuance of thts Act, the assessing authority shall serve on the assessee a notice of demand in the prescribed form specifying the swn so payable.

I 0. Appeals.-( I) Any assessee objectmg to the amount of building tax assessed under secuon 8 or denymg his liability to be assessed under this Act or objectmg to any order of the assessing authonty under this Act may appeal to the appellate authority agamst the assessment or against such 01 der:

Prov1ded that no such appeal shall lie unless the tax has been paid

(2) The appeal shall be in the prescnbed form and shall be venfied m the prescribed manner. ·

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(3) The appeal shall be presented wrthm 4 period of thirty days from the date of service .of the notice of demand relatmg to the assess- ment or t~e date of service of the order; but the appellate authority !D~Y.adm~t an appeal presented after the expitation of the said perrod ~f 1t 1.s sa~1s~ed that the appellant had sufficient cause for not present- mg It w1thm the sa1d period, provided howeve1 that no such appeal shall be admitted after a penod of ~ix months from the date of service of the notice of demand relating to the assessment or the date of service of the order, as the case may be.

(4) The appellate authority shall fix a day and place for the hear- ing of the appeal and mav from t1me to time adjourn the hearing and make or cause to be made such further inqurry as rt trunks fit. At the hearing of the appeal the assessmg authorrty shall also have a right to be heard.

{5) In disposmg of an appeal, the appellate authority may, subject to the provi::.Ions of section II,-

(a) in the case of an order of assessment-

(i) confirm, reduce, enhance, or annul the assessment, (1i) set aside the assessment and d1rect the assessing authority to make a fresh assessment after such further inquiry as may be directed; or

(b) m the case of any other order, confirm, cancel or vary such order.

(6) The appellate authority shall, on the conclusion of the appeal communicate the orders pa~sed by 1t to the as£essee and the assessing authority.

(7) The orders passed by the appellate authoruy shall, subject to the provisions of sectiOn 12, be final and shall not be hable to be questioned in a court of law.

ll. Reference t.o Drstrict Court.-( I) The appellate authority may, if it is satiSfied either suo motu ur on application by any party to an appeal under section 10 that the decision on the appeal mvolves fl question of law, draw up a statement of the case and refer 1t to the District Court.

(2) If the DistriCt Com t IS not sat1sfied that the statements in a case referred under this section are sufficient to enable 1t to determine the question raised thereby, the court may refer the case back to the appellate authority to make such additions thereto or alterations therein as the court may drrect in that behalf ·

(3) The District Court upon the hearing of any such case shall decide the questions oflaw raised thereby and shall deliver its judgment thereon contaming the grounds on which such decision IS founded and shall send a copy of such judgment under the seal of the court to the appeilate authonty which shall pass orders on the appeal in conformity with such judgment.

(4) For the purposes of th1s section, "D1stnct Court" means the District Court having Jumdlctwn over the area m wh1ch the buildmg on which th~ tax has been l"ied i-; situate,

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1'2. Powers of revtswn of the District Collector.-The District Collector may at any time call for and examine the record of any proceeding pendmg before, or disposed of, by the appellate authority or the assess- ing authority and may pass such order in reference thereto as he thinks fit:

Provided that no such order shall be pa~ed under this secti

Provided further that no order passed on th(" baSIS of a reference under section II and to tht" extent covered by the answer to such reference shall be subject to revision by the District Collector.

13. Rectification of mistake.-( I) The appellate authonty or the revisional authority may at any time Within three years from the date of an order passed by It on appeal or revision, as the case may be, and the as~essing;authority.may at any time withm three years from the date of any assessment or I efillid""Order..p~sed by It, of its own motion, rectify anv mistake apparent from the recora"ofthe ~pp("al, revision, assessment or refund, as the ca~e may be, and shall wHhm ·the hke penod rectify any such mistake which has been brought to Its notice by an assessee:

Prov1ded that no such rectification shall be made wh1ch has the - effect of enhancing an assessment or reducing a refund unless the assessee has been given a reasonable opportunity of bemg heard m the matter.

(2) Where any such rectification has the effect of reducing the assessment, the assessmg authority shall make any refund which may be due to such assessee.

(3) Where any such rectification has the effect of enhancing the assessment or reducing a refund, the assessm{{ authority shall serve on the as~essee a notice of demand m the presrribed form spectfying the sum payable ; and such notice of demand shall be deemed to be Issued under section 9 and the provisiOns of this Act shall apply :iccordingly.

14. Power to take evidence on oath, etc.-The appellate authority, the assessing authority and the reVbJOnal authonty shall, for the purpo~es of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908, when trying a suit, m respect of the followmg matters, namely:-

(a) enforcmg the attendance of any person and examinmg h1111 on oath or affirmation ;

(b) compelling the production of documents ; and

(c) issuing commissions.

15. Payment of butldwgs tax.-Any amount specified as payable m a notice of demand under section 9, or an order under section 10, 01 an order under section 12, shall be paid m such number of mstalments, to within such time, at such place and such person, as m:ly be prescnbed, and any as~ssee failing so to pay shall be deemed to be m default.

16. Mode and ttme cifrecoveT)'.-(1) When buildings tax Is not pa1d on the due date the arrears of the tax shall bear mterest at the rate of SIX per cent per annwn from the date of default.

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(2) The arrears of buildings tax and the interest, if any, thereon shall be a first charge on the buildmg, and, notwithstanding anything contamed many other law, the claim for such arrears and interest shall have precedence over the claim for any tax levJed by a local authonty, and such amount shall be recoverable under the law for the time being in force relatmg to the recovery of arrears of land revenue.

17. Rifu1lds.-(l) Ifcny person statisfies the assessing authority that the amount of bUildings tax paid by him exceeds t~e amount with which such person is properly as~essable under t.h1s Act, he shall be entitled to a refund of any such excess.

(2) The appellate authority m the exerci~e of ih appellate powerS or the revi~ional authonty m the cxerci~e of Ib revis1onal powers, if satisfied to the\hke effect, ~hall causf' a refund to be made by the assessmg authority of any amount found to have been wrongly paid or paid in excess. -

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22. Prosecutums.-( 1) A person shall not be proceeded against for an offence under sectiOn 19 or sectJon 21, except at the mstance of such officer as may be authorised by the Gove1 nment in this behalf.

(2) Before instituting proceedings against any person under sub- section ( 1), the officer so authonsed ~hall call upon such person to show cause why proceedings should not be instituted against hun.

(3) The officer so authonsed may either before or after ·the msti- tution of proceedmgs compound any such offence other than an offence under section 21.

23. Manner of.servzce of notzce .-( 1) ~ notice .or requisit10n under this Act may be served on the pe1son therem named e11her by post or as 1f it were a summons issued by a court under the Code of Civil Procedure, 1908.

(2) Any such notice or requisition may, m the case of a firm, Hindu undivided family or Aliyasanthana family or ht anch or Maru- makkathayam tarwad or tavazhi or a fami1y to which the provisions of the Kerala Nambudin Act, 1958, apply, be addressed to any member of the firm or to the Manager, Ejaman or Karnavan, or any adult member of the famt!y, tarwad, tavazh1 or branch and, in the case of any other association of persons, be' addres'sed to 'the principal officer thereof.

24. Power to make rules.-(I) The Goverrtment may, by notification in the Gazette, make rules for carrying out the purposes of this Act.

(2) In particular, and V.:Ithout-prejudice to the generality of the foregoing power, rules made under thi~ secuon may provide for- {a) the determination of the floorage of buildings;

(b) the form o( returns under section 6 and the manner in which they should be venfied ;

(c) the form of the notice of demand mentioned in~ section 9;

(d) the mode and manner of payment and recovery of tax ;

(e) the powers and. dut1es of assessing. authorities, appellate authorities and other officers under this Act, the 'relation of such autho- rities to each other and the conditions of service of such authorities ;

(f) the form m which appeals uni:ler this'' Act shall be presented and \he manner in which they shall be verified ;

(g) the f0rm of application under section ll ;

(h) the form of the notice of demand mentioned in sub-section

(3) of section 13 ; • {i) the manner in which and the authority to \¥liom applica- tions for refund shall be made and the procedure to be followed in respect of such applications ; and

'(j) all other matters expressly required or allowed by this Act to be prescnbed.

(3) All rules made under this Act ~hail, as soon as may be after they are made, be laid before the Legi~lative Assembly for a penod of not less than fourteen days, and shall be subject to such modifications as the Leg1slative Assembly may make durmg the ses~10n m which they are so laid or the session immediately following.

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2.5. Bar of suits in ciuil courts.-No suit shall be brought in any civil court to set as1de or modify any assessment made under this Act and no prosecution, suit or other proceedmg shall lie against any officer of the Government for anything m good fa1th done or intended to be done under th1s Act.

26. Computatton of penod of ltmitatton.-In computing the period of lim1tation prescribed for any appeal under this Act the date on which the order complained of was made and the time requisite for obtaming a copy of such order shall be excluded.

27. Buildmgs tax not to be taken mto account injixmg fair rent.-For the av01dance of doubt, it is hereby declared that m fixing the fair rent of a buildmg under section 5 of the Kerala Buildmgs (Lease and Ren' Control) Act, 1959 ( 16 of 1959), the rent control court shall not take into consideration the budding~ tax that is payable in respect of the building under the provisions of thts Act.

~8. Removal of dzfficulties.-If any d11hculty arises in giving effect to the provisions of th1s Act, the Government, as occas10n may require, may by order ao anythmg not mconsistent with the provisions of this Act for the purpose of removing the difficulty.

THE SCHEDULE

(See section 4)

RATES OF BUILDINGS TAX

Floorage

Where the total floorage of a building is less than 1000 square feet

Where the total floorage of a buildmg is 1000 square feet or more but does not exceed 2000 ~quare feel

Where the total floorage of a building exceeds 2000 square feet but does not exceed 4000 square feet

Where the total floorage of a buildmg exceeds 4000 square feet but does not exceed 8000 square feet

Where the total floorage of a building exceeds 8000 square feet but does not exceed 12,000 square feet

Where the total floorage of a

exceeds 12,000 square feet

building

Nil.

I 0 nP. per sq. foot.

20 nP. per sq. foot;

3C nP. per sq. foot.

40 nP. per sq. foot.

50 nP. per sq. foot.

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