Q1 Can Service charges are charged per area of gala?
Ans. As per provisions under bye-laws no. 69 (6) there is a provision to charge the service charges to all flat in equal proportion.
Q2 What is the composition of the charges of the Society?
Ans. The contribution which can be collected from the members of the society towards outgoings and establishment of its funds, referred to in the bye-laws are termed as ‘charges’. The charges to be collected may be in relation to the following:
(i) Property taxes,
(ii) Water Charges,
(iii) Common Electricity Charges,
(iv) Contribution to Repairs and Maintenance Fund,
(v) Expenses on repairs and maintenance of the lifts of the Society, including charges for the running the lift,
(vi) Contribution to the Sinking Fund,
(vii) Service charges,
(viii) Car Parking Charges,
(ix) Interest on the defaulted charges,
(x) Repayment of the installment of the Loan and Interest,
(xi) Non-occupancy Charges,
(xii) Insurance Charges,
(xiii) Lease Rent,
(xiv) Non-Agricultural Tax,
(xv) Any Other Charges
Q3 Who shall fix the Society charges in respect of every flat and on what basis?
Ans. The Committee has the duty to fix the Society charges in respect of every flat on the basis of the provisions as laid down under the Bye-law No. 69(a).
Q4 Can water charges are charged on shop/ office owner member?
Ans. As per provision in the bye-law no 69 (2) there is a provision that the water charges should charge as per size of the tap making available in each members gala and in proportioning of the number. Therefore water charges can be charge only from those members, who have given facility of water supply.
Q5 What is the duty of the Secretary in case of defaults being committed by any member?
Ans. The Secretary of the society has to bring the cases of defaults in payment of the Society’s charges by the members to the notice of the Committee for taking further necessary action on the same.
Q6 How shall the Committee apportion the Share of each member towards the charges of the Society?
Ans. The Committee shall apportion the Share of each member towards the charges of the Society on the following basis:
(i) Property taxes: As fixed by the Local Authority.
(ii) Water Charges: On the basis of total number and size of inlets provided in each flat.
(iii) Expenses on repairs and maintenance of the building/ buildings of the Society: At the rate fixed at the General body from time to time, subject to the minimum of 0.75 per cent per annum of the construction cost of each flat for meeting expenses of normal recurring repairs.
(iv) Expenses on repairs and maintenance of the lift, including charges for running the lift: Equally by all the members of the building in which lift is provided, irrespective of the fact whether they use the lift or not.
(v) Sinking Fund: As provided under the bye-law no. 13(c).
(vi) Service Charges: Equally divided by number of flats.
(vii) Parking Charges: At the rate fixed by the general body of the Society at its meeting under the Bye-law No. 84 & 85.
(viii) Interest on the delayed payment of charges: At the rate fixed under the Bye-law No. 72 to be recovered from the defaulter member.
(ix) Repayment of the installment of the loan and interest: The amount of each installment with interest fixed by the financing agency.
(x) Non-Occupancy charges: At the rate fixed under the Bye-law No. 43(2)(iii)(c).
(xi) Insurance Charges: In the proportion the built up carpet areas of each flat, provided that if there is increase in the insurance premium due to storing any specific goods in any flat, used for commercial purposes, the extra burden of insurance premium shall be shared by those who are responsible for such increased premium in proportion of the built up areas of their flats.
(xii) Lease Rent: The built up carpet area of each flat.
(xiii) Non-Agricultural Tax: The built–up carpet area of each flat.
(xiv) Any other charges: As may be decided by the General body of the Society at its meeting.
Q7 What items can be clubbed under the head of Service Tax in a Society?
Ans. The service charges of the Society can include the following:
(i) Salaries of the office staff, liftmen, watchmen, gardeners and any other employees of the Society;
(ii) Where the Society has independent office, the property taxes, electricity charges, water charges etc. for the same;
(iii) Printing, Stationery and Postage;
(iv) Travelling Allowance and conveyance charges to the staff and the members of the committee of the Society;
(v) Sitting fees paid to the members of the committee of the Society;
(vi) Subscription to the Education Fund of the Maharashtra Rajya Sahakari Sangh Ltd.;
(vii) Annual Subscription of the Housing Federation and any other cooperative institution to which the Society is affiliated;
(viii) Entrance Fees for affiliation to the Housing Federation and any other co-operative institution;
(ix) Audit Fees for internal, statutory and Construction work re-audit, if any;
(x) Expenses incurred at meetings of the general body, the Committee and the Sub-Committee, if any;
(xi) Retainer fees, legal charges, statutory enquiry fees;
(xii) Common electricity charges;
(xiii) Any other charges approved by the General Body at its meeting.
However such charges should not be contradictory to the provisions of the Act, Rules and Bye-laws of the Society.
Q8 What is the interest liable to be paid by a member on the defaulted charges?
Ans. A member is required to pay a simple interest at such rate as is fixed by the General Body of the Society at its meeting, subject to a maximum rate of 21 percent per annum, on the charges of the Society, from the date the amount was delayed till its payment not paid by the member within the period as prescribed under Bye-law No. 70.