Regarding rent & taxes
bharat garg
(Querist) 23 November 2011
This query is : Resolved
Hello Sir/Ma'am,
We are running a Textile industrial unit on about 2000 sq.ft space for about 30 years for which we are paying 500 rs as a rent for which we are receiving the receipt of the same every month.
1.) The landowner (which i m till date confused that he is the owner or its leased area) has failed to pay/or in some confusion, dint pay the govt municipality taxes levied by them since 2001. He has calculated the total area and asked us to pay approx 77000rs as taxes from the date it's been pending.
2.) As the rent is too low seeing the market condition he wants it to be hiked by 12%-20% that is abt 6k-10k which is too high for us now.
My Query is 1.) Am i liable to pay the tax amount which did not accumulated by my mistake?
2.) Is it legally correct to hike the rent to that percent?
Ethically I accept that rent is to low and should be increased which according to me should of been abt 3-4 times of the current one.
Please guide
rgds
Bharat
bharat garg
(Querist) 23 November 2011
Correction on the above- The landowner wants to hike the rent by 12-20 times... I mistakenly wrote down 12-20%
Devajyoti Barman
(Expert) 23 November 2011
First of all why are you so bother about such taxes when you are enjoying such a huge area at a paltry sum of Rs 5,000/-.
Just imagine what would have been your feeling had you been a landlord and your tenant was using such area as a manufacturing unit @Rs 5000/- only.
1. Yes
2. Yes
ajay sethi
(Expert) 23 November 2011
you are very lucky man . you are enjoying 2000 square feet area at measly rent of rs 500 . it is chicken feed .
if you are unable to pay you cna always surrender your tenancy rights to third party . you will get a good market price .
how can landlord pay property taxes from his own pocket? the tenants have to make payment to cover the taxes .
bharat garg
(Querist) 23 November 2011
Thx first of all for the suggestions.. U all r correct that its a paltry amt.
Even i ethically accept that i should pay more.. But we along with many other industries , is there for last 30 years and we have always paid the amount they asked for.
The rent in 1973 was 50 rs and now its 500.. But all of a sudden asking for 10,000 is wrong even.
As far as taxes are concerned, They r due from 2001. M i supposed to pay taxes when i m not a landlord? And if i m supposed to pay then He should have added the taxes each year accordingly in the rent amount.
how can he ask for a lump sum of money for his own mistake which he has done from last so many years? I have got the receipt of the rent I m paying of till last month.. So does that make me a culprit?
prabhakar singh
(Expert) 24 November 2011
In my opinion taxes electricity water and other utility charges are payable by tenant
unless expressly agreed in writing to the contrary.Even if accumulation under these heads have taken place as he did not collect you you needed to pay them on your own.
As regards to rent hike i am of the view that
any rent which is just Rs.500/= cant not be hiked to Rs.10,000/= abruptly.
Simultaneously ,the tenant should also bear
in his mind that the rent should get enhanced at least to meet the inflation,then a 10% each year hike can not be and should not be a point of agitation for any old tenant.
Where are you located?
Which rent law applies to you??
Is your tenancy is protected under any state legislation???
bharat garg
(Querist) 24 November 2011
Thank You Singh saab.. Thx for your suggestions.. Its true to hike the rent to a certain amount.. It could be 4-5 times the current amount but should not be 20 times... Secondly we were never ever told abt the taxes.. The lanlord all of a sudden stood and asked for 77k's as tax.. We r there for last 30 years, and the taxes got accumulated from 2001.. The increase in rent which is nominal was taking place time to time, so we were not aware that they r not paying taxes..
Had they have asked it yearly or added it in monthly rent then it would have been appropriate..
Sir If someday someone pops up at ur door and says u owe 1 lac to me as u havent paid so n so for last 10 years, wont u be in a shock and will argue that y men u havent come all these years?
Raj Kumar Makkad
(Expert) 24 November 2011
Definitely the liability of the tax payment lies with the landlord and he was required to remain paying it as he did for the period prior to 2001 but as you are now sufferer so it is in your interest to pay it and have receipt accordingly with prior intimation to such landlord and ask him to adjust this amount from the rent.
So far fair rent is concerned, in almost each state there are local laws rent. You or landlord either of you can approach to Rent Controller and can fixed the fair rent.
Recently Apex Court of India has also held that old tenants are required to pay rent in consonance with the prevailing rates of rent in local locality.
bharat garg
(Querist) 09 May 2012
Hello Dear Members,
As said above we are paying Rs.5oo as rent for a commercial premises. The rent has been increased from 50-500 in last 30 years and we have paid it to the person authorised by the landlord.
Now the Landlord wants to increase the rent and he wants the arrears of last one year as well of the hiked rent.
The rent which is proposes now is about 9000 rs p.m.
My question is, Is it legally correct to increase so much of rent. From 500rs to 9k's P.M. Ofcourse we are ready to pay admissible as per the law which can be 10-15% which i know.
Pls guide
bharat garg
(Querist) 25 October 2012
Landlord refused to take the rent from last 6 months or so. Should I opt for depositing the rent in court?
