One Day, One Minute, One Rule – 238
How are service charges calculated for Central Government properties held by Local Bodies, and what are the specific payment rates?
While Article 285 of the Constitution exempts Union properties from state or local taxes, the Central Government is liable to pay service charges for services rendered by Local Bodies. These charges are calculated based on the extent of services availed:
• For properties where all services are availed in the same manner as private properties, the government pays 75% of the property tax rate realized from private individuals.
• For colonies that are self-sufficient and do not directly avail of civic services within their area, the charge is restricted to 33 1/3% of the normal property tax rate.
• Where only partial use of municipal services is made, the rate is 50% of the normal property tax.
• For colonies availing of all services normally provided by the Municipal Body, the rate is 75%.
• Specific services that are metered or measured (such as water or electricity) must be paid at 100% of the charges paid by private individuals.
(Memorandum No. N-11025/26/94-UCD (circulated via Dept. of Posts No. 16-2/2001-Bldg). Dated 26th April, 1994 (Reiterated January 2004).
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