Government charges: GST is not included in land tax, council rates, water rates, ASIC filing fees or insurance stamp duty. Purchases that are GST free: Items such as basic foods, overseas exports and some health services are GST free.
As per the Goods and Services Tax law, maintenance charges upto Rs 5000 a month are exempt from GST. Although the Finance Ministry has issued a clarification, this arbitrary calculation of GST done by the builder has left home owners like Sumeet Saxena confused.
Per square feet method is the most used method for calculating maintenance charges for housing societies. According to this method, a fixed rate is charged per square feet of the area of an apartment. For instance, the rate per square feet maintenance charge for an apartment complex is Rs. 3.0 per sq feet per month.
In an order passed on April 29, cooperative court judge D A Argade relied on a 2004 Bombay high court judgment, which held that maintenance charges shall have to be equal amongst all members irrespective of their carpet area or number of bedrooms. The same shall not be levied on the basis of per sqft.
5. The electricity charges paid to BESCOM for power consumed towards common facilities and separately recovered from members is liable to GST as consideration received for the supply of maintenance services to the members.
1. What are the new GST rates on the construction of residential apartments?
| Rate | Description |
|---|
| 1% | New affordable housing projects |
| Ongoing affordable housing projects opting for new rates |
| 5% | Ongoing other than affordable housing projects |
| New other than affordable housing projects |
IFMS merely represents a deposit collected for unprecedented events against which the supply of service may or may not happen in future. Hence, IFMS cannot be taxed under GST.
So if your monthly maintenance charges/amenities exceed Rs. 5000 only you need to pay GST. Otherwise you refuse to pay the illegal maintenance charges over and above Rs. 5000 or Annual turnover of society or RWA is more than Rs.
To make a member to pay maintenance the association or the housing society which is supposed t be a registered one can initiate recovery of maintenance proceedings. The investors who are selling the apartment will have to pay their dues to get NOC to either from the builder or the owners association .
Home at risk – Flat without OCWithout a valid OC, your occupancy is illegal as it can be classified as an unauthorised structure by the authorities. 2.
But, Maharashtra Real Estate Regulatory Authority (MahaRERA) has ruled against the builders asking them not to charge maintenance fees to those buildings which have not received an OC and to those buyers who do not take possession.
If you have not been paying your maintenance bills, your housing society can now take action against you, and your home can even be auctioned off. Once the registrar's office issues a certificate, a recovery officer can take action, which can even extend to the attachment or auction of your property.
Who issues completion certificate? The completion certificate is provided by the local authority after inspection of the premises. If all the rules, norms and safety guidelines have been met by the developer, the authority provides the completion certificate.
Maintenance charges are the monthly expense that home owners in housing societies have to bear, for the maintenance of common facilities in the project.
A Member shall be required to pay simple interest at 21% per annum, or, at such lower rate as may be fixed by the General Body, on the outstanding dues to the Society, from the date the amount was due as prescribed under Bye-law no. 69, till full and final payment by the Member.
Now, there can be questions like, 'do I have to pay these maintenance charges if my flat is vacant/unoccupied? ' The answer is still, 'yes'. This is because, the charges are not levied for the individual houses, but for the common maintenance that the society or builder has to do on a frequent basis.
How can a buyer check when his OC comes? The status of the project or related documents can be accessed on the web portal of the concerned RERA, if the project is registered under the Act. RERA mandates that all builders update the developments in the project on a regular basis.
The finance ministry Saturday said GST will not be levied on buyers of real estate properties for which completion certificate is issued at the time of sale. It said cost of housing projects or complexes or flats, other than those in affordable segment, would not have gone up due to implementation of GST.
Your maintenance charges will depend on the total number of square feet in your apartment. For example, if the committee decides to levy Rs 2 per square feet and your apartment is 600 sq feet, you will pay Rs 1200. But if your apartment is 1200 square feet, you will pay Rs 2400.
One popular rule says that 1% of the purchase price of your home should be set aside each year for ongoing maintenance. For example, if your home costs $300,000, you should budget $3,000 per year for maintenance.
One of them is maintenance charge which is paid monthly or annually by the apartment owners to the society complex or resident welfare association for upkeep of the common area. Usually housing societies levy maintenance charges as per the area of the flat or on other variables if the apartments are of same size.
Service charges are an amount that tenants pay to cover the cost of providing communal or shared services to a building and, if applicable, the surrounding estate. The way charges are calculated and what they cover are set out in your tenancy agreement.
The society should have to prepare following registers permanently.
- Managing Committee minute book.
- Register of General Body Meeting and special general body meeting.
- All types of cash books.
- Bank Pass Book.
- Member Register.
- Bye-laws booklet.
- Audit Report.
- Papers regarding ownership of the society.
The calculation for building repair charges are formulated by the general body of each society, but is subjected to a minimum of 0.75% of the construction cost of the apartment. For example, the construction cost is Rs. 1000 per square feet, the expense on repairs would come to Rs.
