COSIA apprise Maharashtra Industries Minister about ill-effects of ready reckoner rates on industries in MIDC

COSIA Vidarbha Chairman Mayank Shukla along with its Core Committee Member CA Julfesh Shah met Maharashtra Minister for Industries Mr. Subhash Desai. They apprised him about the ill-effects of imposing ready reckoner rates on industries in various MIDC areas in the State and submitted a memorandum of the same.

The memorandum stated that first of all these rates of property are usually implemented in the areas where there are no prescribed rates to calculate tax on property or calculate income on sale of property or transfer the long-term ‘lease hold rights’ or to levy Stamp Duty in case of commercial transactions of immovable property.

These rates are fixed on earlier commercial transactions of property that has taken place in similar location. This ready reckoner rates are taken as base to calculate the property tax for local body including Gram Panchaytats. It is also taken as base to calculate Stamp Duty and also as base on evaluating direct tax by Revenue Department (Income Tax).

Now, MIDC offers its land for lease specifically for industrial use only and thus rates of allotment for lease is also much less than the ready reckoner rates.

Therefore, taking ready reckoner rates as base in MIDC areas is totally illogical and has its ill effect on the industrial development in the State, the memorandum stated.

CA Julfesh Shah further elaborated that the adverse effects of this implementation are:-

1) Inflated Stamp duty

2) Inflated Capital Gains tax, and

3) Inflated levy of property tax by Local bodies, which discourage the commercial transaction of property meant for only industrial use in MIDC area.

Thereby under utilization of precious land, allocated for industrial activity, resulting in shortage of land particularly where there is a scarcity of land and thus hindering industrial development of that area.

Mr. Subhash Desai gave patient hearing to these issues and assured COSIA to take this matter with appropriate authorities and convene a meeting with industries associations to do the needful in this important matter.

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