Maintenance charges to builder in absence of housing society
Chandraprakash B. Morjal
(Querist) 23 July 2018
This query is : Resolved
I have purchased a flat in Khativali Village of Shahapur Taluka in Thane District and got possession in 2013. The agreement for sale states about payment of maintenance charges @ 1686/- per month for three years from the date of possession of the flat. The builder has not allowed to form the Co-operative Housing Society unless the construction work of adjacent building is completed. The structure of the said adjacent building is left unattended for more than 3 years. Even after completion of 3 years in 2016, as required in agreement of sale, the builder has forced me to pay monthly maintenance charges at unjustified rate of Rs. 1686 (increased to Rs. 2248/- per month from 01-04-2018).
As per my knowledge, the maintenance charge is a sum total of Annual Repairs at minimum 0.75% of construction cost of a new building/flat, and, in addition, reimbursement of other expenses incurred by the builder on behalf of the flat owners. Accordingly, I have asked the builder to justify maintenance charges @ Rs. 1686 / 2248 per month for which he has chosen to be silent.
The flat owners are being forced to make payment of GST even on the reimbursement of other expenses like Panchayat Tax, NA Tax, Electricity consumption for common premises, etc, incurred by the builder on behalf of the flat owners. Moreover, The Co-operative Housing Society would have been formed within a reasonable period as per existing rules, regulations and practices if it had not been denied by the builder. In case of the existence of CHS, the payment of GST on Maintenance Charges would have been on different footings.
In view of the above, I am in need of your expert advice in light of the existing rules, regulations and practices in the matter relating to maintenance charges and GST thereon in such forced circumstances. - Chandraprakash B. Morjal (Mobile No 9987093041).
Chandraprakash B. Morjal
(Querist) 24 July 2018
Additional information: The real estate business is sole proprietorship business run in the name and style of Lakshmi Developers. However, the proprietor has created a different entity like Association in the name and style of Lakshmi Developers Vrindavan for the purpose of collecting maintenance charges. This entity has been created without consultation with flat owners and it is working under his administrative control. In view of this I am not liable to pay GST as my outgoings towards maintenance charges does not exceed Rs.5000/7500 at any given time so far. Therefore I need comments of experts on this point also apart from the main issue raised by me.
Hemant Agarwal
(Expert) 25 July 2018
Kindly prefer to visit the following link, for basic answers to your queries:
http://hemantagarwal21.blogspot.in/2013/10/service-charges-in-coop-society.html?view=sidebar
Keep Smiling .... Hemant Agarwal
