Quick Answer: What Is Non Occupancy Charges?

What is sinking fund in housing society?

Sinking fund can be defined as the fund which is kept in a separate account to be used for major expanses.

These expanses include major repairs, new equipment’s and other maintenance activities along with structural changes..

Can society collect extra money from the owner as maintenance charges for rented flats?

In the GR dated 01.8. 2001, it has clearly stated that society can charge 10% of the monthly maintenance charges as non-occupancy charges for keeping a tenant in the flat. … If your society asks you to pay additional charges as non-occupancy charges, which is more than 10% of the maintenance, then under Bye-law No.

Is society NOC required for leave and license?

Not required. You can jnform the Society once it is given on license. … No NOC is required from society if there is no such bio law you can make an agreement with tenant and can inform society of same and also you have to seek a police verification from the tenant.

Do I need to pay maintenance charges if I am not staying in a flat?

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 are non occupancy charges calculated?

As mentioned above, non-occupancy charges levied by society should not be more than 10 per cent of the service charges. For example, if the service charges portion in the monthly maintenance calculation are Rs 2,710 per month, non-occupancy charges would be Rs 271 (10% of Rs 2,710) per month.

Is GST applicable on property tax?

1. Services provided by the Central Government, State Government, Union territory or local authority to a person other than business entity, is exempted from GST. So, Property Tax, Water Tax, if collected by the RWA/Co-operative Society on be- half of the MCGM from individual flat owners, then GST is not leviable.

Is GST applicable on trust?

Services provided to charitable trusts are not out of ambit of GST. … There is no exemption for supply of goods by charitable trusts. Thus any goods supplied by such charitable trusts for consideration shall be liable to GST. For instance, sale of goods shall be chargeable to GST.

Can society has right for ask for registered the 11 months rental agreement?

Majority of rent agreements in India are crafted for an 11-month period to avoid the hassle of registration by both parties. “Despite no registration, an 11-month rent agreement is legally valid and is admissible in the court of law in case of a dispute between the tenant and the landlord.

How is the housing society sinking fund calculated?

In accordance with Bye Law No. 13 (C), the General Body can decide the Sinking Fund contribution, subject to the minimum of 0.25% per annum of the construction cost of each flat incurred during the construction of the building of the Society and certified by the Architect, excluding the proportionate cost of the land.

Can society charge extra for tenants?

Apart from this, housing societies tend to charge a premium for maintenance and other facilities from the tenant. “Ideally, the society cannot charge extra from the tenant because the latter does not deal with the society, just the owner,” says Ravi Goenka, advocate, Goenka Law Associates.

Is GST applicable on non occupancy charges?

Sinking fund, repairs & maintenance fund, car parking charges, Non- occupancy charges or simple interest for late payment, attract GST, as these charges are collected by the RWA/ Co-operative Society for supply of services meant for its members.

What is non occupancy tenant?

tenant holding under a tenant other than permanent tenure holder or fixed rate tenant. The interest of such tenant extinguishes … terms in Oudh, ex-proprietary tenants, occupancy tenants and hereditary tenants are non-occupancy tenants.”

Can society remove tenants?

Then the society cannot evict the tenants as they have no specific reason to evict the tenants. … What is the basic purpose of rental agreement between a landlord and tenant?

Is GST applicable on maintenance charges collected by builders?

In a circular issued to clarify the applicability of GST on building maintenance charges, the ministry said that in case the charges exceed Rs. 7,500 a month per member, the entire amount is subject to 18% GST, not just the amount in excess of ₹7,500.

Who is agriculturist in Himachal Pradesh?

. Under section 2(2) of the Act’ Agriculturist’ means a person who cultivates land personally in an estate situated in Himachal Pradesh.

Who pays non occupancy?

The Owner of unit (member of society) have to pay the non-occupancy charges but if the tenant mutually accepted to pay the maintenance charges and non-occupancy of the unit as per tenancy agreement, then the owner can collect such charges from tenant otherwise the owner have to pay the non-occupancy charges.

Are non occupancy charges mandatory?

What are non-occupancy charges? People living in a housing society have to pay maintenance charges. Even when the property is unoccupied, you still are required to pay the maintenance charges without any concessions.

How are flat maintenance costs calculated?

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.