State stipulates service charge levied on mutation

KOLKATA: The state Urban Development and Municipal Affairs department has stipulated the service charge to be levied by the urban local bodies (ULBs) effecting the mutation of land or buildings in the state.

"There was no standardised rate for mutation of land or buildings. So, the ULBs would charge differently in the name of development charge/permission fee/other charges and this resulted in confusion among the common people. Now all the urban local bodies will have to levy a fixed service charge according to the nature of the building as notified by the state government,"a senior official of the Municipal Affairs department said.

However, lands or buildings whose annual valuation does not exceed Rs 500, located in slum areas, buildings/flats constructed for economically weaker sections by state government, social welfare homes, shelters for homeless run by state or local body, any government-sponsored school or college, buildings used for public worship etc shall be exempted from service charge. In case transfer of land or building by inheritance or testamentary succession, if the annual value (AV) of the residential land or building is upto Rs 5000 the A/B/C category of municipality can levy 15 per cent of AV as service charge and 10 per cent for D /E category of municipality. For non-residential in the same category 30 per cent AV can be charged by A, B and C category civic body and 20 per cent by D and E categories. In case, the AV value of land or building is over Rs 5000 for residential 20 and 15 per cent can be taken as service charge by A/B/C category and D/E category municipalities respectively. For non residential, the service charge will be 40 and 30 per cent of AV for these two categories.The service charge for the two grades of municipalities in case of transfer through gift within family members for both residential and non-residential has been notified too. by the Municipal Affairs department. It has also mentioned service charges to be imposed for transfer by sale or otherwise like lease, gift outside the family and also in case of Partition Deed. In case of municipal corporations when land transfer is done by inheritance or testamentary succession 15 per cent and 20 per cent AV respectively can be charged in case of residential whose AV is upto Rs 5000 and more than Rs 5000 respectively. For non-residential, 30 per cent and 40 per cent of AV can be imposed for land or building upto Rs 5000 and more than Rs 5000 respectively.The service charge to be imposed for transfer by gift within family members, outside family members and partition deed within areas of municipal corporations has also been notified.