Home-based businesses in Shimla under scanner: MC to conduct inspections

Taking stern cognisance of property tax evasion, the Shimla Municipal Corporation (MC) is set to launch a special drive to identify residents running commercial activities from their homes while paying property tax at domestic rates. According to the MC, several individuals in the city are operating businesses from residential premises but continue to be billed under the lower domestic category.

Bhuwan Sharma, Joint Commissioner of Shimla MC, said property tax billing has been completed and the enforcement drive will begin across all 34 wards of the town from September 15. “Officials will carry out random inspections to verify if any resident is conducting commercial activities from a residential property without informing the MC. If such violations are found, the person will be liable to pay property tax at commercial rates,” he stated.

Sharma added that the drive will also check for concealment of property details, such as showing a plot as vacant while actually raising a structure or any other misrepresentations that fall under the purview of commercial tax rates.

“Last year, around 80 individuals were found running commercial activities from residential areas and were charged commercial rates. The MC collected approximately Rs 18 crore in property tax during the previous financial year,” he said.