MAH.Coop Society, Formula for interest levy
V. VASUDEVAN
(Querist) 23 December 2010
This query is : Resolved
Dear Experts,
A Coop Housing Society, situate in Mumbai is collecting Maintenance Charges on quarterly basis i.e. Jan - March,... The Bill for the quarter is raised in the beginning. While resident members mostly pay this in time. Members not residing in the society take a long time - some time two years fee is in arrears. It has decided to levy interest on arrears and set a dead line of 31st Dec 2010. Query: On 1st January 2011, the outstandings needs to charged with interest @21%. So for the charges due of the 1st quarter 2010, can the society charge interest from the 2nd quarter on wards!. No notice for charging of interest was given earlier and it has been issued only in Dec 2010 (bye-mail).
Would be obliged for a detailed response.
Vasudevan
s.subramanian
(Expert) 24 December 2010
You have to put them on notice about the interest factor and then only charge. Otherwise it will be illegal to do so. Now that you have issued the notice and fixed the deadline,you are at liberty to charge the interest on the defaulted payment.
