[for pseudo intelectual] municipal tax in vizag

by Guest Wed Nov 23, 2011 8:21 am

i used your greater vizag municipal corp. calculator for a sample calculation.

calculator: http://www.gvmc.gov.in/Tax/cal_tax.asp

results:

MONTHLY RENTAL VALUE (MRV) =1800

Formula : [PLINTH AREA X RATE] = 150 X 12

GROSS ANNUAL RENTAL VALUE(GARV) = 21600

Formula : [MRV X 12 months] =150 X 12 X 12

The Gross Annual Rental Value will be divided into Building Area & Site Area @ 2/3 and 1/3 respectively

BUILDING ANNUAL RENTAL VALUE (BARV) = 14400

Formula : [(2/3) X GARV] = (2/3) X 21600

SITE ANNUAL RENTAL VALUE (SARV) = 7200

Formula : [(1/3) X GARV] = (1/3) X 21600

Discount will be given only on Building Annual Rental Value not on Site Rental Value

BUILDING ANNUAL VALUE DEPRECIATION(BARVD) =6480

Formula : [Building Rental Value X (Discount/100)] =14400 X (45/100)

[ Seashore area additional depreciation 5% included for building rental discount value ]

BUILDING ANNUAL RENTAL VALUE NET(BARVN) = 7920

Formula : [Building Annual Rental Value Net(BARVN) = BARV - BARVD] =14400-6480

NET ANNUAL RENTAL VALUE(NARV) = 15120

Formula : [Net Annual Rental Value = Site Annual Value + BARVN] = 7200 + 7920

ANNUAL TAX = 3913

Formula : [Annual Tax = NARV X (Tax Rate/100)] = 15120 X (25.88/100)

HALF-YEAR TAX =1957

Formula : [Half-year Tax = Annual Tax/2] =3913.06/2

concentrate on what i have highlighted in red and bold. the tax rate is applicable on the NARV. the tax rate is mentioned in that line. it is 25.88%. and which is going to be hiked by 75% this year for those who have been slapped with an excess of 75% hike. for others, like you, it will rise by at least 50% soon or to 39%.

tax to increase: http://www.thehindu.com/news/cities/Visakhapatnam/article2364754.ece

it is nowhere near the 5% you had been hallucinating.

by Guest Wed Nov 23, 2011 10:46 am

http://www.hindu.com/pp/2007/12/08/stories/2007120850010100.htm

Different methods of property tax calculation are used in
India. Chennai follows the rateable value system where the property tax
is calculated as a percentage of the annual rental value. New Delhi
uses the `unit area’ method where a value is fixed for a square metre of
space based on its location. In Chennai, the half yearly property tax
rate ranges from 6.62 per cent to 12.40 per cent of the annual rental
value. In Kolkata, which uses the same method as Chennai, the property
tax rate ranges from 11 per cent to 40 per cent of annual rental value.
In Hyderabad it is 30 per cent.

mumbai is now moving to a tax a percentage of market value.

by Guest Wed Nov 23, 2011 1:01 pm

re: pwn and pawn discussion from chat.

i never said pwn was wrong but you kept insisting pawn was wrong. i repeated it wasn't. i gave you an urbandictionary reference but you refused to accept it. you are adamant, stubborn and inflexible.

i know you will ignore this post (i read you that well now). but i am happy we will not be having any arguments in future. the apathy is mutual.

by Mosquito Wed Nov 23, 2011 1:24 pm

Huzefa Kapasi wrote:i used your greater vizag municipal corp. calculator for a sample calculation.

calculator: http://www.gvmc.gov.in/Tax/cal_tax.asp

results:

MONTHLY RENTAL VALUE (MRV) =1800

Formula : [PLINTH AREA X RATE] = 150 X 12

GROSS ANNUAL RENTAL VALUE(GARV) = 21600

Formula : [MRV X 12 months] =150 X 12 X 12

The Gross Annual Rental Value will be divided into Building Area & Site Area @ 2/3 and 1/3 respectively

BUILDING ANNUAL RENTAL VALUE (BARV) = 14400

Formula : [(2/3) X GARV] = (2/3) X 21600

SITE ANNUAL RENTAL VALUE (SARV) = 7200

Formula : [(1/3) X GARV] = (1/3) X 21600

Discount will be given only on Building Annual Rental Value not on Site Rental Value

BUILDING ANNUAL VALUE DEPRECIATION(BARVD) =6480

Formula : [Building Rental Value X (Discount/100)] =14400 X (45/100)

[ Seashore area additional depreciation 5% included for building rental discount value ]

BUILDING ANNUAL RENTAL VALUE NET(BARVN) = 7920

Formula : [Building Annual Rental Value Net(BARVN) = BARV - BARVD] =14400-6480

NET ANNUAL RENTAL VALUE(NARV) = 15120

Formula : [Net Annual Rental Value = Site Annual Value + BARVN] = 7200 + 7920

ANNUAL TAX = 3913

Formula : [Annual Tax = NARV X (Tax Rate/100)] = 15120 X (25.88/100)

HALF-YEAR TAX =1957

Formula : [Half-year Tax = Annual Tax/2] =3913.06/2

concentrate on what i have highlighted in red and bold. the tax rate is applicable on the NARV. the tax rate is mentioned in that line. it is 25.88%. and which is going to be hiked by 75% this year for those who have been slapped with an excess of 75% hike. for others, like you, it will rise by at least 50% soon or to 39%.

tax to increase: http://www.thehindu.com/news/cities/Visakhapatnam/article2364754.ece

it is nowhere near the 5% you had been hallucinating.

2 things here. I never said property tax % is 5%. It 18% of the rental value which is less than 40% that u mentioned. Even if it is on net annual rental value it is 26% which is far less than 40%.

As high as that percentage may seem, at end of the day the tax I owe on my house is close 4,200. Annual rental value is far less than the market rate(seems to be about 20% or less)

it is less than 0.1% of property value.
25% of 1 month's market rent.

In US property tax is 1% of the value.

Which is not high at all. Even if it doubles, it would still be 0.2% of the market value. Bottom line is property taxes in India are very low. That was main crux of our argument.

by Mosquito Wed Nov 23, 2011 1:28 pm

Huzefa Kapasi wrote:re: pwn and pawn discussion from chat.

i never said pwn was wrong but you kept insisting pawn was wrong. i repeated it wasn't. i gave you an urbandictionary reference but you refused to accept it. you are adamant, stubborn and inflexible.

i know you will ignore this post (i read you that well now). but i am happy we will not be having any arguments in future. the apathy is mutual.

Urban dictionary adds any shit. It doesnt have to be legit. I said those use pawn for pwn are idiots. I stand by it.

by Guest Wed Nov 23, 2011 2:11 pm

PseudoIntellectual wrote:Urban dictionary adds any shit. It doesnt have to be legit. I said those use pawn for pwn are idiots. I stand by it.

those who say pwn for own are not idiots.
those who say pawn for pwn are idiots.

why are the latter idiots (but the former aren't)? any sub-caste obsession here? how is pwn so sacrosanct? pwn is also pronounced as pawn in real -- pwn has no official way to be pronounced. it is but natural that it will get conflated with pawn sooner rather than later (and coincidentally it makes sense too). as per wikipedia there is a debate in urbandictionary about the etymology of pwn and some think it is derived from pawn. why this sudden discrimination by you out of the blue?

also, what is your reaction to my vizag property tax rate post? let it flow.

by Guest Wed Nov 23, 2011 2:22 pm

Huzefa Kapasi wrote:why this sudden discrimination by you out of the blue?

...discrimination as in being idiots!

by Guest Thu Nov 24, 2011 12:00 am

PseudoIntellectual wrote: Bottom line is property taxes in India are very low. That was main crux of our argument.

nope it was not. you had said, property taxes in india are very low. i said no, they were high. you said you shelled out a paltry rs 2k for your house in vizag. then i said -- property tax in vizag is 40%, wanna bet? you said, yeah sure.

it turns out that most residential properties have been slapped with a 100% or more hike in vizag already (maybe not you...yet). this 100% hike will settle at 75% as per the hindu article. so current tax rate in vizag is 45.29% effectively! you lose. the bet was about general property tax in vizag not your house per se.

your argument that property tax in india is very low is still unsubstantiated and based on your hallucinations that perhaps the property tax in india is 5% or a paltry rs 2,000. the fact is that you don't know what the property tax rates in india are and are not in a position to compare them with those in the usa (again we are talking about india and not your house).

2 things here. I never said property tax % is 5%.

you did say this. later you said you had miscalculated. even if you did not say this, i did say that as per my feeling it must be 40% in vizag. i am right.

It 18% of the rental
value which is less than 40% that u mentioned. Even if it is on net
annual rental value it is 26% which is far less than 40%.

again you are displaying your incapacity to understand a simple thing. the rate of tax is mentioned in that chart. you cannot recompute the tax rate. and i have already shown that it is now 45.29% for the posh residential areas of vizag. my apologies if your house is not in a posh area. the argument was not for your house per se but for the general property tax rate in vizag.

As
high as that percentage may seem, at end of the day the tax I owe on my
house is close 4,200. Annual rental value is far less than the market
rate(seems to be about 20% or less)

we are not arguing about your house. we are arguing about the general property tax rate in vizag and by extension, the average property tax rate in india.

it is less than 0.1% of property value.
25% of 1 month's market rent.

In US property tax is 1% of the value.

i am not familiar with the usa system. however i do not accept your idiotic explanation based on your house. i need to study this independently. i'll do this later.

by Guest Thu Nov 24, 2011 12:44 am

i just worked out a calculation. it seems that the impact of 40% tax on net annual rental value works out way more than the 1% of market value in cases where the property is actually put on rent. you can work it out on your house (vizag) by finding the actual rent it would fetch. what i am saying is that in some caes, the indian system (40%) is way more than the cali 1% system.

by Guest Thu Nov 24, 2011 1:46 am

clarification: in cases of actual renting, the rental income is used to compute the annual value and there is no need to assume a rental rate.

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