megamenu

Frequently Asked Questions

    
What is Property tax?

A : Property tax is a tax levied on every building in a Municipal / Town Panchayat limit together with its site and other adjacent premises occupied as appurtenance.

Who is empowered to levy a Property Tax?

A : The concerned Municipal Council is empowered to levy Property tax on directions from the Government by order published in the Official Gazette (Refer Sec 78(1) of TNDM Act, 1920)

What are the components of Property Tax?

A : a) a tax on general purpose
b) a drainage tax
c) a lighting tax
d) a Scavenging tax
e) a railway tax. But in town panchayats, only the tax on general purpose is levied.

What is the period of levy of the Property tax?

A : The Property tax is levied every half year (Ref Sec 86 of TNDM Act, 1920)

What is the mode of Assessment of Property Tax?

A : Self Assessment Mode

How can a Citizen apply for Property Tax?

A : A citizen applying for Property Tax should submit a) duly filled in Self-Assessment Form.
b) Documents of title such as sale deed / patta.
c) Agreement of Sale / Agreement of construction in case of Apartments.
d) Approved Building Plan obtained from the Concerned Town Panchayat.
e) Photograph showing the Rain Water Harvesting Structure in the building.

What are the buildings exempted from Property Tax?

A : The following buildings and lands shall be exempt from property tax:- a) Places set apart for public worship.
b) Choultries for the occupation of which no rent is charged.
c) buildings used for educational purpose including hostels attached there to, public buildings and places used for charitable purpose.
d) Such Ancient moments prescribe under Ancient moments preservation Act, 1904
e) Charitable hospitals and dispensaries
f) Such hospitals and dispensaries maintained by railway administrations.
g) Burial and burning grounds included in the book kept at the municipal Office.
h) Buildings or land belonging to municipal Council. (Ref Sec 83 of TNDM Act, 1920)

What is the procedure for Name Transfer of Property?

A : i) On application by the person to whom the property is transferred the Registered Sale Deed of the property.
ii) Copy of receipt of the property tax paid up to the previous half year.
iii) Payment of Name Transfer Fees as prescribed by the concerned Town Panchayat.

What is water charges?

A : Water charges are the charges levied for supply of domestic and non domestic water provided to any household/commercial establishment.

On what basis, the water charges are levied?

A : The water charges are levied in accordance with the by-laws framed by the respective Council of Town panchayat.

What is the frequency for payment of water charges?

A : The water charges are levied on monthly/quarterly/Half yearly/ Anual basis in Town panchayats.

What can I do to obtain the House Service connection??

A : i) One has to apply the Town Panchayat in the form prescribed which is to be obtained from the Town Panchayat concerned or download the application form from the website http://www.dtp.gov.in.
ii) Filled in forms should be submitted at the Town Panchayat Office on all working days.
iii) Submission of application along with a copy of the property tax receipt paid up to date, Patta in case of Natham or ownership registered document of property.
iv) Citizen have to wait for their turn i.e. seniority.(A seniority list will be prepared after calculating the registration fee and drinking water will be provided within 7 days after payment of deposit and necessary centage charges.)
v)Initial Amount for Water Supply connections which is non refundable will be collected based on the usage of water supply connection in accordance with bye-laws of the Local Bodies.
vi) Payment of centage charges for Water Supply Connection, on intimation from the local body in writing.

Who should pay Profession tax?

A : A person shall be deemed to have transacted business or exercised a profession, trade, calling or employment within a TownPanchayat, if such person has an office or place of work within such TownPanchayat.(Sec-275)

What is the Time Limit for filing Half-yearly Returns?

A : The half-yearly tax shall be paid before 30th September and before 31st March for the first and second half-year, respectively.(Sec 278(4))

Who are exempted from levy of Profession Tax?

A : a) the members of the Armed Forces of the Union serving in any part of this State to whom the provisions of the Army Act, 1950 (Central Act XLV of 1950), the Air Force Act, 1950 (Central Act XLV of 1950) or the Navy Act, 1957 (Central Act 62 of 1957) applies (b) the members of the Central Reserve Police Force to whom the Central Reserve Police Force Act, 1949 (Central Act XLVI of 1949) applies and serving in any part of this State (c) Physically disabled persons with total disability in one or both the hands or legs, spastics, totally dumb or deaf persons or totally blind persons are exempted from profession tax.

What are all the profession tax slabs and rates?

A :

Sl.No. Average Half-Yearly Income Half-Yearly Tax
1 Upto Rs. 21,000/- Nil
2 From 21,001/- to 30,000/- Rs. 135/-
3 From 30,001/- to 45,000/- Rs. 315/-
4 From 45,001/- to 60,000/- Rs. 690/-
5 From 60,001/- to 75,000/- Rs. 1025/-
6 From 75,001/- and above Rs. 1250/-

Mode of assessment and payment of tax

A : (1) (a) Every person liable to pay tax to the municipality under the Act and these rules other than a person earning salary or wage, shall furnish a return to the Commissioner in Form 15 within thirty days from the date of commencement of the trade, profession or calling:
   Provided that the Commissioner may extend the time limit for filing of returns for a further period not exceeding thirty days.
(2) The person filing a return under sub-rule (1) shall make a self-assessment on the basis of his average half-yearly income. The return shall be accompanied either with a challan for the payment of tax in the municipal office or cheque, demand draft or proof of online payment for the tax due for the first half-year for which the return is being filed. Any such return not accompanied with such challan, cheque, demand draft or proof of online payment shall be deemed to have not been duly filed.
(3) The Commissioner shall acknowledge receipt of such return and payment of tax.
(4) The tax for the subsequent half-years shall be paid by such persons before 30th September for the first half-year and before 31st March for the second half-year, respectively.
(5) The returns filed under sub-rule (1) shall be valid until the next general revision and if there is a change in the average half-yearly income or a change in the place of work, the person concerned shall file a fresh return in Form 15 which shall be accompanied with proof of payment along with proof of evidence for such changes. Such changes shall take effect from the date of filing of return which shall be valid untill the next general revision.

Method of payment

A : The half-yearly tax shall be paid in the municipal office or in any place during specified hours on all working days as notified by the Commissioner. The payment shall be made either through online payment modes as made available by the municipality, or by cash through challan, cheque or demand draft drawn in favour of the Commissioner

What is Non Tax?

A : The income generated from the assets of the Local body like wise, Daily/Weekly Shandy, Bus stand collection, Public Toilets, Trees, Shops, Lodges, Parking Lots and etc. are the Non Taxes.

How can I apply for trade license?

A : The applicant must fill the application in Form-I along with proof of address, documents connected with the building, which could be a property tax receipt (for an own building) or rental agreement (for a rented building), affidavit declaring the nature and location of trade in a non-judicial paper attested by a Notary Public submit to executive authority of ULB’s.

When to apply for Trade license?

A : The owner or occupier of every place for the use of which a licence is required under sub-rule (1), shall apply to the Executive Officer for such licence not less than 45 days and not more than 90 days before the place is used for such purpose. (Sec-289 (4))

How trade license is issued?

A : On receipt of an application for the grant of such licence, where the trade or business relates to Schedules I and II, the Executive Officer may, after inspecting the premises in which the trade (or) business is to be carried, if considered necessary, either grant the licence in Form 9 or refuse to grant the licence form reasons to be recorded in writing, within sixty days from the date of receipt of the application: Provided that no licence shall be refused without giving an opportunity of being heard to the applicant. (Sec-289 (5))

How much the trade license fees?

A :Every application for the grant of such licence shall be made to the Executive Officer in Form 1 together with the fee prescribed by the council

SCHEDULE I

[See rules 289 (1), (2) and (5)]

(1) Applicability.– This Schedule is applicable to any industry or factory or enterprise involved in the production of goods which is not licenced under the Factories Act, 1948 (Central Act LXIII of 1948), Industries (Development and Regulation) Act, 1951 (Central Act 65 of 1951), Arms Act, 1959 (Central Act 54 of 1959), Explosives Act, 1884 (Central Act IV of 1884) and Petroleum Act, 1934 (Central Act XXX of 1934).

(2) Licence Fee.– The licence fee for the micro, small and medium enterprises shall be levied based on the category of the such enterprises as per the Micro, Small and Medium Enterprises Development Act, 2006 (Central Act 27 of 2006):

Provided that the applicant does not have a valid Udyam registration, the category of the industry shall be determined using the Goods and Services Tax Number or the latest Income Tax returns:

Provided further that the applicant does not have Udyam registration Certificate and tax returns, he shall submit a sworn affidavit in Form 17 certifying the category of the enterprise for which the licence is sought for.

(a) Micro Enterprises (Rate per annum):


Urban Local Bodies Minimum Fee (Rs.) Maximum Fee (Rs.)
(1) (2) (3)
Town Panchayats 750/- 2,000/-

(b) Small Enterprises (Rate per annum):

Urban Local Bodies Minimum Fee (Rs.) Maximum Fee (Rs.)
(1) (2) (3)
Town Panchayats 2,000/- 3,500/-

(c) Medium Enterprises (Rate per annum):

Urban Local Bodies Minimum Fee (Rs.) Maximum Fee (Rs.)
(1) (2) (3)
Town Panchayats 5,000/- 8,500/-

(d) Others (or) Large Industry (Rate per annum):

Urban Local Bodies Minimum Fee (Rs.) Maximum Fee (Rs.)
(1) (2) (3)
Town Panchayats 7,500/- 30,000/-

SCHEDULE II

[See rules 289 (1), (2) and (5)]

(1) Applicability: (1) This schedule is applicable to any shop or commercial establishment where any trade or business is carried on or where services are rendered to customers and store rooms, godowns and warehouses, whether in the same premises or otherwise, used in connection with such business.

(2) This schedule is not applicable to the following categories:–
(1) Categories specified in other schedules of these Rules;
(2) Companies registered under the Companies Act, 2013 (Central Act 18 of 2013) banks, financial institutions;

(3) Browsing centres and gyms licensed under the respective Acts;

(4) Trades and businesses licensed under the Arms Act, 1959 (Central Act 54 of 1959), Explosives Act, 1884 (Central Act IV of 1884), Petroleum Act, 1934 (Central Act 30 of 1984) and Cinematograph Act, 1952 (Central Act 37 of 1957); and

(5) The Clinical Establishments (Registration and Regulation) Act, 2010 (Central Act 23 of 2010).

(1) Licence Fee (Rate per annum):


Urban Local Bodies Minimum Fee (Rs.) Maximum Fee (Rs.)
(1) (2) (3)
Town Panchayats 500/- 7,500/-

SCHEDULE III

[See rules 289 (1) (2) and (7)]

(1) Applicability.— This schedule is applicable to all public buildings used as,–
(1) Eating House, Canteen or Restaurant with a clearly demarcated kitchen and seating area;
(2) Lodging houses as defined in the Tamil Nadu Public Health Act, 1939 (Tamil Nadu Act 3 of 1939), Hostel, Choultry, Mansion, Guest House, Service Apartment where lodging is based on weekly, monthly or annual rentals; and
(3) Kalyana Mandapam, Banquet-hall or other such similar public buildings ordinarily used for public meetings or celebrating functions or holding parties.

(2) Licence Fee (Rate per annum):
(i) Eating House/Canteen/ Restaurant with a clearly demarcated kitchen and seating area:

Urban Local Bodies Minimum Fee (Rs.) Maximum Fee (Rs.)
(1) (2) (3)
Town Panchayats 750/- 10,000/-

(ii) Hostels, other than those licenced under Tamil Nadu Hostels and Homes for Women and Children (Regulation) Act, 2014 (Tamil Nadu Act 18 of 2014):

Urban Local Bodies Minimum Fee (Rs.) Maximum Fee (Rs.)
(1) (2) (3)
Town Panchayats 750/- 2,000/-

(iii) Lodging houses as defined in the Tamil Nadu Public Health Act, 1939 (Tamil Nadu Act 3 of 1939), Choultry, Mansion, Guest House, Service Apartment where lodging is based on weekly, monthly or annual rentals

Urban Local Bodies Minimum Fee (Rs.) Maximum Fee (Rs.)
(1) (2) (3)
Town Panchayats 2000/- 20,000/-

(iv) Kalyana Mandapam, Banquet-hall or other such similar public buildings ordinarily used for public meeting or celebrating function or holding parties.

Urban Local Bodies Minimum Fee (Rs.) Maximum Fee (Rs.)
(1) (2) (3)
Town Panchayats 2000/- 20,000/-

SCHEDULE IV

[See rules 282 (11) and 286 (2)]


(i) Private parking stand and shelter (Rate per annum)

Urban Local Bodies Minimum Fee (Rs.) Maximum Fee (Rs.)
(1) (2) (3)
Town Panchayats 1500/- 20,000/-

(ii) Private Slaughter-House (Rate per annum)

Urban Local Bodies Minimum Fee (Rs.) Maximum Fee (Rs.)
(1) (2) (3)
Town Panchayats 1500/- 15,000/-

How to remit the license fees?

A : The fees under this Chapter shall be paid through online payment portal or any digital payment method of the TownPanchayat concerned or through demand draft in the main office, zonal offices, ward offices and in such other offices as may be indicated by the Executive Officer, during office hours on all working days

How and When to renew the Trade License?

A : (1) A licence issued by the Executive Officer under rule 289, shall be valid for a period of three years from the date of issue and may be renewed for a further period of three years.
(2) Every application for the renewal of licence shall be made to the Executive Officer in Form 1, three months before the date of expiry of the licence together with licence fee as may be fixed by the council.
(3) No inspection shall be carried out for renewal of a licence granted under sub-rules (5) and (9) of rule 289 and the renewal application shall be disposed of by the Executive Officer either renewing the licence or refusing to renew the licence within fifteen days from the date of receipt of such application:
Provided that no tax or fee due to the Town Panchayat to be paid by the licensee shall be pending at the time of submission of the renewal application:
Provided further that no renewal shall be refused without giving an opportunity of being heard to the applicant.
Provided also that if the application is not disposed of within a period of fifteen days from the date of its receipt, the renewal of licence applied therein shall be deemed to have been granted on expiry of the said period

What are the documents required/documents to be enclosed for applying Trade License?

A : Every application for the grant of such licence shall be made to the Executive Officer in Form 1 together with the fee prescribed by the council and shall be accompanied by the following documents:–
(a) Identity proof such as aadhaar card in the case of individual and Permanent Account Number card or incorporation certificate in the case of body of persons or company.
(b) Lease deed or Rental agreement or latest Property Tax receipt or latest Goods and Services Tax return clearly showing the address of the trade or business for which the licence is applied: Provided that if the applicant does not have any valid address proof, he shall submit a sworn-in affidavit in Form 17;
(c) For applications under Schedule I, Udyam registration Certificate or latest Goods and Services Tax return or Income Tax return to determine the category of enterprise: Provided that if the applicant does not have Udyam registration Certification or any tax return, he shall submit a sworn-in affidavit in Form 18 certifying the category of enterprise for which the licence is sought for. (Sec-289 Sub-3)

What are the procedures for the permission for establishing or installation of factory or workshop or workplace?

A : Grant of permission for the construction, establishment or installation of factory, workshop or workplace in which steam or other power is to be employed.
i) Planning Approval and Building permission from the competent authority.
ii) Such particulars as to be the power, machinery plant or premises as the municipal council may require by by-laws made in this behalf.
iii) Approval of the Inspector of Factories (Wherever applicable) appointed under the India Factories Act 1911.
iv) Opinion of the Deputy Director of Public Health in ULBS where Municipal Health Officer post is not in existence.
v)NOC from Fire and Rescue Services Department
vi)TNPCB consent to establish the industry/workplace/workshop.