Suneet Gupta (www.vashiadvocates.com) 19 May 2012

Non-occupancy charges for partnership firms

Hi,

I own an office in my individual name in a commercial building with office space only. The building has a Cooperative Society , which charges regular service charges, etc. The office is being used for a partnership firm in which only my offspring and first degree blood relations are partners. The office is not on rent and I remain in possession thereof.

Can the society charge non-occupancy charges in this case? It is my understanding that a partnership firm is not a separate legal entity and is only represented by the partners. As all the partners are blood relations (as defined under the Co-op Act), can the Society charge Non-occupancy charges in this case?

Thanks and regards,
Suneet

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4 Replies

Suneet Gupta (www.vashiadvocates.com) 19 May 2012

Hi,

Just to add, the Office building is in Navi Mumbai.

Thanks and best regards,

Suneet

(Guest)

hi sunit

no, you don't have to pay non occupancy charge. as stated in Government order in respect of Non-Occupancy Charges No.SGS 1094/15165/C.No. 317/14C Co-operative & Textile Department, Mantralaya (Extension), Mumbai -400 032.

it is stated that:if members have given their tenements to their nearest relatives mentioned below, non-occupancy charges should not be charged.Mother, father, sister, brother, son, daughter, son-in-law, brother-in-law, sister-in-law, grandson, grand niece and in addition to that, additional relatives as may be decided by society.

https://wirc-icai.org/material/Non%20occupancy%20charges.pdf

so you don't have to pay non occupancy charge.