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(1) Procedure for declaration of Notified Areas:

For better development of the area for Industrial purpose and to save the industries from multiple taxation and authorities, Government is declaring the industrial areas of GIDC and others, as 'Notified Area' under section 16 of the GID Act, 1962 which are fulfil the following norms:

The area should be compact.
The area should be self-sufficient for maintenance of it'
There should be population of 500 people.

On declaration of the area as 'Notified Area' provision of some sections of Gujarat Municipalities Act, 1963 are being extended for administration. The Government or GIDC is not giving any grant to such authorities. Notified Area Authority is collecting the Consolidated Tax for maintenance of infrastructure services.

 
Sr.
No.
Name of Area (District) Sr.
No.
Name of Area (District)
I   ANAND V   SURAT
1   V U Nagar 
(Inclusive of Expansion Area)
14   Sachin
2   Vasna (Borsad) 15   Hajira
II  VADODARA VI   VALSAD
3   Nandesari 16  Valsad
4   Petrochemical Complex 17   Vapi
5   GSFC 18   Sarigam
6   Vaghodia 19   Umergam
7   Por - R'gamdl VII  GANDHINAGAR
III  GODHRA 20   Kalol
8   Kalol (Panchmahal) 21   Chhatral
IV  BHARUCH VIII  JAMNAGAR 
10    Ankleshwar
(Inclusive of Expansion Area)
22   GSFC
(Motikhavdi – Sikka)
11   Valia (Naldhari) IX  BHAVNAGAR
12    Valia – Jhagadia
(GNFC Scooter project Area)
23   Alang – Sosiya
  (Area of Guj. Maritime Board)
13   Panoli    

 


(2) TAX RULES:

The Government has revised the Tax Rules and Tax structure with effect from 31 – 08 – 2005. Accordingly, for calculation of Capital Value of the land and Building is to be calculated considering the following:
 
‘Market Value of Building’ means the prevailing cost of construction of Building per unit area as may be notified by the Corporation year to year based on the standard specifications adopted in the construction of building. Provided that the market value shall be increased or decreased up to 10% by the Notified Area Officer in cases where higher or lower specifications than the standard specifications of the Corporation are used in respect of construction of private buildings.
 
‘Market Value of Land’ means the allotment price of Land as may be prevailing on 1st April 1998 for industrial, residential and commercial purpose as declared by the Corporation. It will however be (1) 50% of such price in case of allottee occupying the property from 1st April 1980 and (2) 75% of such price in case of allottee occupying the property from 1st April 1990.
 
Formula to Calculate Consolidated Tax:
 
  1. Calculate Capital Value (i.e. for land and Building only) considering the above.
  2. Less: Depreciation at the prescribed rate in schedule – I
  3. Calculate Gross Rateable Value (GRV) @ 6% of (Capital Value - Depreciation)
  4. Deduct 10% of GRV as Statutory Deduction (SD)
  5. Calculate Net Rateable Value (NRV) = GRV - 10% SD
  6. Compute Consolidated Tax @ 12%, 12.5% or 13.5% of the NRV as applicable below for all Notified Areas except (1) Petrochemical Complex (2) GSFC [Vadodara] (3) Valia – Jhagadia [GNFC Scooter Project] (4) Hajira (5) GSFC [Motikhavdi – Sikka]. Whereas, for these areas the rates of tax will be 6%, 6.25% or 6.75% of the NRV as applicable below:

Rates of Consolidated Tax for Industrial and Commercial Properties
 

Rate of Tax

Limit

@ 12%
or 6%

Net rateable value not exceeding Rs.16, 199/-
(for properties valued up to Rs. 3,00,000)

@12.5%
or 6.25%

Net rateable value between   Rs.16, 200/- to Rs. 27,000/-
(for properties valued above Rs. 3,00,000 and up to       Rs. 5,00,000)

@13.5% or 6.75%

Net rateable value above Rs.27, 000/-
(for properties valued above Rs. 5,00,000).

Further, the rates of Tax for Residential properties and properties belonging to schools, colleges, social and charitable institutions yielding any revenue or rent for all the Notified Areas are as follows:

Rates of Consolidated Tax

Limit

5% of net rateable value. For properties up to 30 square metres built up area
7% of net rateable value For properties between 31 Square Metres and    50 square metres built up area
8% of net rateable value For properties between 51 Square Metres and    100 square metres built up area
10 % of net rateable value For properties above 100 square metres built up area

Schedule – I

Category

Type of Building

Rates of Depreciation

A

RCC structure + slab roof   (Expected life 90 years) Nil for 5 years, 1 % every year thereafter

B

Pucca construction with AC sheet Roof. (Expected life 75 years) Nil for 5 years, 2 % every year thereafter

C

Semi Pucca construction of tin roof. (Expected life 30 years) Nil for 3 years, 3 % every year thereafter

Further, as per revised rules, following provision for rising in quantum of tax has been made:

  • The quantum of tax shall be increased between 5% and 10% every year on non-compound basis, in consultation with local Advisory Committee.
  • Ceiling on the increase in the incidence of tax due to increase in capital value is fixed by 40% of previous Block year.

Following properties are exempted from tax:

  • Buildings and land belonging to the Central or State Government, Panchayat, District school board and Municipal school buildings, protected monuments within the meaning of Ancient Monuments Preservation Act, 1904 and not yielding any revenue or rent. All buildings and lands or portions thereof used or occupied exclusively for public worship or for schools, colleges, social and charitable institutions not making any profit.
     
  • Any occupier engaged in the manufacture of goods and services shall be exempted from the payment of tax as follows:-

    (i) Total exemption for first year beginning from the date of allotment.
    (ii) 50% exemption for the second year.
    (a) Any occupier, not being an allottee of the Corporation shall not be entitled to the exemption as stated above for the first and second year in which the land and building was put to use for manufacturing of goods and services.
     
  • Properties belonging to Corporation shall be exempted from the payment of tax as follows:

    i. Properties, which have not been allotted or rented, shall be fully exempted.
    ii. The properties allotted and resumed by the Corporation, shall be taxed on the lines of closed units.

Remissions and Refund:

  • Where any building or land remain vacant and has not been used through out the year or part thereof, the remission or refund of Three – Fourth of the amount of tax shall be granted from the date of intimation thereof.

(3) Financial Assistance to affected villages:

  • Further, as per Government Resolution dated 30th August 1993 and 29th January 1999, the 1/3rd portion of the recovered consolidated tax at the above rates are to be earmarked and diverted to the concerned District Rural Development Agency for the development works of the affected villages whose lands have been incorporated in the Notified Area. Under the scheme of ‘Gokul Gram Yojna’ of the State Government.

(4) Administration of Notified Area:

  • A Proposal to give greater autonomy to the present Advisory Committee by converting it into a Statutory Committee (Board of Management) is submitted the Government.
  • To Facilitate constitution of the statutory Committee (Board of Management), the Government has amended Sec.16 of GIDC Act 1962 and also made provision to appoint the Director of Notified Areas in the Corporation not below the rank of General Manager, for the purpose of uniformity and providing efficient management in Notified Areas vide its notification dated 01-05-2007 and necessary notification for appoints the said amendment with effect from 15-05-2007 has also been issued by the Government on 11-05-2007. (Copy of both the notifications attached herewith)
  • A rule - book is also prepared and submitted to Government. This shall come into effect on approval of the Government.

Notification

  1. Rules and Orders (Other than those published in Part I, I-A and I-L) made by the Government of Gujarat under the Gujarat Acts.
  2. Acts of the Gujarat Legislature and Ordinances promulgated and Regulations made by the Governor.

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