Kerala Building Tax Act 1975 James Joseph Adhikarathil, Former Deputy collector & Trainer ILDM - Kerala Land Revenue Department.

1. KERALA LAND REVENUE
DEPARTMENT
Training for SMART REVENUE COLLECTION.
T. James Joseph

2. Training
 Learn.
 Unlearn.
 Relearn.

3. SMART REVENUE COLLECTION.
It Is TEAM work.
 T-Together
 E-Everyone.
 A-Achieves.
 M-More.
 Team work makes the DREAM
work

4. SMART REVENUE COLLECTION.
COMMUNICATION is the life line.
 Forms.
 Notices.
 Letters.
 Orders
 Conferences. Say No to
reminders.

5. SMART REVENUE COLLECTION
 S- Specific.
 M- Measurable.
 A-Achievable.
 R- Result oriented.
 T- Timebounded.

6. Achieving the target. Obstacles
 Poor team work.
 Lapses in court case monitoring.
 Lapses in identifying the building.
 Unrealistic target.
 Absence of resources.
 Poor inspection mechanism/review.

7. Plinth area rules.
 Kerala Building Tax Act 1975
 Kerala Building Tax Rules 1974
 01/04/1973 – Plinth area rules.
 01/04/1999- Luxury Tax.

8. Plinth area rules.
 Independent Act.
 Independent mechanism
 We have our own laws
 Need not require any support.
 Respect the tax payer and his
privacy.

9. Building tax file.
 Document to be retained for
ever
 Will be verified by several
authorities.

10. Assessment of KBT is based
on Plinth area..01/04/1973
 Residential.
 Other buildings.
 Mixed.
 Flats.
 Extensions.
 Exemptions.

11. Exempted buildings. S.3.
Government is the authority to exempt and there is
bar of suits.
 Government Buildings.
 LSG Buildings.
 Charitable institutions.
 Factories .
 Workshops.
 Building constructed with govt.grant.
>25%
 Educational institutions.

12. Exempted portion of residential
buildings.
 All car porches.
 Garages.
 Fire wood storage.
 Toilet.
 Cattle/pig/chicken farm

13. Eligible date of assessment .
 Date of completion or
 Date of Residence whichever is
earlier.

14. FORMS
 Form I – List of buildings liable for assessment.( VO ).
 Form II - Return of completion of building (Assessee).
 Form III- Notice to submit return.
 Form IV - Notice for hearing.
 Form V - Assessment order by Tahsildar.
 Form VI- Demand Notice.
 Form VII – Appeal to RDO
 Form VIII- Revision Application to Collector.
 Form IX – Demand notice for the revised assessment.
 Form X - Application for refund.

15. REGISTER.
 A- register of assessment - Taluk office
 B- register of assessees - Village Office.
 C- register of reported cases- village Office.
 D- Register of Luxury tax cases. – Village Office.
 Annexure 12- VOM – Register of buildings having
possibility of extention.

16. Authority.
 Assessment – Tahsildar.
 Appeal – RDO
 Revision- District Collector./Government.
 Exemption- Government.
 Reporting.
 Communication. Village Officer.
 Collection.

17. Appeal.
 Should be submitted to RDO in form VIII within
30 days of assessment.
 Delay can be condoned upto 6 months.
 25% of assessed tax should be remitted.
 Stay petition may also be included.
 RDO should inform tahsildar about the appeal.

18. Revisiion.
 Should be submitted to District collector in form
IX within 30 days of appeal order.
 Provision for suomoto revision..
 50%of assessed tax should be remitted.
 Government can revise the order.

19. Important points
1. As per finance act 2011 if the assessed
residential area is above 4000 an additional 2%
housing cess has to be realised.
2. Home stays run as part of tourism promotion
belongs to Other buildings.

20. Important points
3. If the area is decreased after sale of the
buildings remitting luxury tax the tax may be
exempted.
4. No collection charge required in the the case
of building tax realised through RR.

21. Important points
5. PSUs and Board buildings are not exempted
6. Buildings having SSI registration are not
exempted.
7. LSG Buildings- Fully exempted.
8.

22. Important points
5. If the area is decreased after sale of the
buildings remitting luxury tax the tax may be
exempted.
6. PSUs and Board buildings are not exempted

23. Assessment.
 8. admintrative block of educational institutions
not exempted.
 9.Property tax may be allowed to remit only
after remitting arrears of Luxury tax.
 10. As per finance act,relaxation to buildings
having area more than 2000 sq ft- 50 % tax only
if the have fulfilled 3 conditions.

24. Assessment.
 11. Low cost buildings constructed as per plan
of government agency deserves 12.5% tax
rebate.
 12. Excess 15% tax for flats and apartments.
 13.All car porches of residential buildings are
exempted.
 14. Violation of the exemption invite tax
assessement with 12% penalty.

25. Assessment.
15. Payment of Building tax do not guarantee
right over the land.
16. Tahsildar can revise area reduction cases in
the case of Luxury tax.
17 . Truss roof area exempted if it not converted
to a usable area.

26. Appeal.
 Should be submitted to RDO in form VIII within
30 days of assessment.
 Delay can be condoned upto 6 months.
 25% of assessed tax should be remitted.
 Stay petition may also be included.
 RDO should inform tahsildar about the appeal.

27. LUXURY TAX. 01/04/99
 Slab 1. 287.4 sq m – 464.50 ---- Rs.5000
 Slab 2. 464.51sq m – 696.75--- -- Rs.7500
 Slab 3. 696.76 sq m – 929.00---- Rs.10000
 Slab 1. 929.01 sq m -onwards --- - Rs.12500
Rebate of 20% for advance remittance for 5 yrs.
Should be reassesed if reduction in area claimed.

28. KERALA BUILDING TAX ACT 1975
DAY -2 WORKSHOP
Section wise Analysis .

29. KERALA BUILDING TAX ACT- 1975
SECTIONWISE ANALYSIS

30. KERALA BUILDING TAX ACT- 1975
S.1.
Appointed day 01-04 -1973

31. KERALA BUILDING TAX ACT- 1975
S.2. definitions
Any structure and its parts inside the
compound but does not include portable
structures ,buildings made of mud ,bamboo,
grass, leaves, or thatch and a latrine.

32. KERALA BUILDING TAX ACT- 1975
S.2. definitions
Any structure and its parts inside the
compound but does not include portable
structures ,buildings made of mud ,bamboo,
grass, leaves, or thatch and a latrine.

33. KERALA BUILDING TAX ACT- 1975
S.3. Exemptions .
1. Govt,LSG buildings.
2. Religious buldings
3. Charitable buildings.
4. Educational Buildings.
5. Factories and workshops.
2. Request should be referred to Government.
3. Government decision cannot be challenged by
Court.

34. KERALA BUILDING TAX ACT- 1975
S.4. Authorities
Assessment – Tahsildar
Appeal- RDO
Revision- District collector/Govt.

35. KERALA BUILDING TAX ACT- 1975
S.5. Mode of assessment.
1. Plinth are is the basis.
2. Extended building also to be assessed.
3. Total area should be taken and tax
remitted earlier to be deducted.
4. Plinth area of other structures in the
compound excluding firewood place,
garage, non residential portions and a
latrine.

36. KERALA BUILDING TAX ACT- 1975
S.6. Verification of plinth area.
1. Approved building plan and field
verification
2. Role of VO

37. KERALA BUILDING TAX ACT- 1975
S.7. Return
1. Responsibility of the owner to file return
before the tahsildar .
2. Service of notice to file return within 30
days
3. Power of tahsildar to extend the timeline.
4. If any person hesitate to file return
tahsildar can assess the bulding to the best
of his judgement.

38. KERALA BUILDING TAX ACT- 1975
S.8. Freedom of the owner to
file return.
1. Owner has the freedom to file or correct
the return any time before the assessment.

39. KERALA BUILDING TAX ACT- 1975
S.9. Assessment.
1. If the return is correct and complete direct
assessment order can be issued by Tahsildar.
2. If tahsildar is not satisfied service of notice to
assessee for hearing.
3. Issue of assessment order.
4. Notice to produce further evidence.
5. Issue of assement order to assessee failed to
produce evidence.

40. KERALA BUILDING TAX ACT- 1975
S.10. Demand notice.
1. Demand Notice to be served with
assessment order

41. KERALA BUILDING TAX ACT- 1975
S.11. Appeal.
1. Appeal before the RDO
2. In the prescribed form,stamped along with
25% tax remitted proof.
3. To be filed within 30 days of service of A.O.
Delay upto 6 months can be condoned
4. Hearing to be conducted.
5. Assessment authority to be present in the hearing.
6. RDO can confirm reduce enhance or remand the assessment.
7. Appellate order to be communicated to tahsildar.
8.Appellate order cannot be questioned in court.

42. KERALA BUILDING TAX ACT- 1975
S.12 Reference to court.
1. The RDO either suomotu or on application
convinced that question of law involves in
the matter He can refer it to District
court.

43. KERALA BUILDING TAX ACT- 1975
S.13. Revision by District Collector.
1. District Collector can either suomotu or on
application initiate revision. Hearing to be
conducted. DC shall not call for the assessment
file directly.
2. The revision application should be within 30 days
of receipt of the appellate order in the prescribed
form along with proof of 50% tax remittance.
3. No revision on pending appeal.
4. Suomotu revision must be within 3 months of the
appellate order.

44. KERALA BUILDING TAX ACT- 1975
S.14. Revision by Government.
1. Government can either suomotu or on
application revise the order within 60 days
of the service of the revision order.
2. Decision after hearing.

45. KERALA BUILDING TAX ACT- 1975
S.15. Revision by Government.
1. Appeal authority or revisioning authority
either on application or suomotu can
rectify any mistake apparent on records.
2. If there is any change in assessment, the
assessee should be heard.
3. Refund or realisation of excess tax can be
done.
4. Notice to pay enhanced tax.

46. KERALA BUILDING TAX ACT- 1975
S.17. Hearing, a quasi judicial
process.
1. Attendance.
2. Compelling production of documents.
3. Issuing commissions.

47. KERALA BUILDING TAX ACT- 1975
S.18. Installment facility for
tax remittance.
1. Attendance.
2. Compelling production of documents.
3. Issuing commissions.

48. KERALA BUILDING TAX ACT- 1975
S.18. Installment facility for
tax remittance.
1. Attendance.
2. Compelling production of documents.
3. Issuing commissions.

49. KERALA BUILDING TAX ACT- 1975
S.19. Interest.
1. 6% interest for delayed payment.
2. Arears of tax will invite first charge.
3. No Collection charge if collected through
RR

50. KERALA BUILDING TAX ACT- 1975
S.20. Refunds..
1. .

51. KERALA BUILDING TAX ACT- 1975
S.21. Punishments..
1. Penal provision for submitting false
statements by the assessee.
2. IPC 177.

52. KERALA BUILDING TAX ACT- 1975
S.22. Penalty for delayed
return..
1. Penalty @ RS 5 per day from the receipt of
notice.

53. KERALA BUILDING TAX ACT- 1975
S.23. Power of Inspection
1. Revenue officers have power to inspect
when authorised.
2. Notice to be given.
3. Penalty for obstruction -3 months
imprisonment and Rs 500.

54. KERALA BUILDING TAX ACT- 1975
S.24. Prosecutions.
1. .

55. KERALA BUILDING TAX ACT- 1975
S.25. Service of notices
1. .

56. KERALA BUILDING TAX ACT- 1975
S.26. Power to make rules.
1. .

57. KERALA BUILDING TAX ACT- 1975
S.27. Bar of suits.
1. .

58. KERALA BUILDING TAX ACT- 1975
S.28-Computation of the
period of limitation.
1. .

59. KERALA BUILDING TAX ACT- 1975
S.29-Building tax shoud not be
the basis of fixing fair rent..
1. .

60. KERALA BUILDING TAX ACT- 1975
S.30-Removal of difficulties.
1. .

61. KERALA BUILDING TAX ACT- 1975
S.30-Removal of difficulties.
1. .

62. KERALA BUILDING TAX ACT- 1975
S.30-Removal of difficulties.
1. .

63. KERALA BUILDING TAX ACT- 1975
S.31-Repeal of KBT ordinance
1974.
1. .

64. Thank You!!
 .
T. JAMES JOSEPH MOB -9447464502
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