Author: yazdi

Recent Circular for Co-op. Housing Societies in Maharashtra

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Office of Co-operative Commissioner and Registrar, Co-operative Societies, State of Maharashtra, Pune New Central Building,

2nd Floor, Pune-1

Phone no. 20-26122846/47                                          Email-comm.housing20@gmail.com

Jaavak  Kramaank No. Home/ D-3/ Housing Sosa./ Grievance Redressal/ 14 SAA 1654

Date :- 04 May, 2023

Sir,

1.         Divisional Joint Registrar, Co-operative Societies, All 2. District Deputy Registrar, Co-operative Societies, All

3.         Joint Registrar, Co-operative Societies, CIDCO

4.         Deputy Registrar, Co-operative Societies, Mhada

5.         District Co-operative Housing Federation, All

Subject:       Regarding the complaint made by the members of the organization against the Executive Committee / Administrator in the Co-operative Housing Society in the State.

Reference:  This office circular no. Home/D-3/Housing Sosa./Grievance Redressal/10, dated 15/03/2010

Since many complaints of the members of the organization against the executive committee and the administrators in the state cooperative housing organization are being received at the Office of the Hon. The Deputy Commissioner had informed the Government in the reference letter dated 15/06/2019 that it is necessary to carry out effective measures for redressal of the complaints of the members of the Housing Society by conducting independent inquiry and appointing a study group for their effective implementation. Accordingly, the government appointed a study group under the chairmanship of Additional Registrar (Collection and Planning), Co-operative Societies, M.R. Pune vide letter dated 18/07/2009. The said study group submitted the said report on 27/11/2009 to the Government and Hon. It has been submitted to the office of the People’s Commissioner. Accordingly circular instructions were issued on 15/03/2010 for redressal of complaints received frequently and on a large scale at various levels. However, after this, many changes have taken place due to the changes brought about by the 97th Amendment to the Co-operative Act, the inclusion of a new section under Section 154 (b) relating to housing societies in the Co-operative Act. Taking that into consideration, the above mentioned circular instructions need to be substantially modified. Therefore, the previous circular is canceled and the following revised circular instructions are being issued.

PREFACE:-

1.         Regarding Absence of Members from Annual General Meeting, Non-participation in Elections- The functioning of Co-operative Housing Societies depends on the attendance of all the members in the meeting as well as in the election. Most of the members of the organization do not attend the monthly / annual meetings as well as elections and later complain about the decisions / resolutions of the meeting. As above, remedial measures should be planned to minimize the complaints received and it is hereby indicated that all the meetings/elections organized by the organization should be attended by the members. If the members who will not be present complain about the proceedings of the meeting, they should inform the court under section 91 and close the complaints

2.         Provision regarding security arrangement of members

In many co-operative housing societies, the original flat holders are not resident and they rent out the flats. The managing committee does not have the details of who lives in the said flats. Also, there is no detail about security guards, cleaning staff coming to the institution. It is necessary from the point of view of the members of the organization that the management committee should have this information.

In this regard, it is indicated that the management committee shall appoint persons residing in the institution, owner tenants, security guards, cleaning staff etc. Complete information along with photographs should be kept in the organization’s computer or if there is no computer in the register

3.         Regarding Minutes of Management Committee Meeting

The minutes of the managing committee of the organization are not written. Following the complaints received regarding wrong entries in the minutes, it is indicated that after the meeting of the Managing Committee, it is mandatory to write in the minutes of one month / next meeting.

4.         Anti-bullying mechanism

            Many complaints are frequently received from organizations and members regarding the functioning of cooperative housing societies at various levels. The said grievances are expected to be resolved at the local level within a short period of time. For that, the following should be done.

In that regard, it is suggested that the complainant should first file their complaint by applying to the organization. After receiving the complaint application, after discussion in the committee meeting, the committee will decide on such application by majority vote. The decision of the management meeting will be communicated to the members within 15 days. If not satisfied with the decision communicated by the committee, a complaint can be made to the advisory committee constituted by the general meeting of the organization.

The Advisory Committee of the Institute shall be as follows –

1.         Chairman elected by the General Assembly (other than Working Committee Chairman)

2.         A member elected by the General Assembly (other than a working committee member)

3.         A member of the Managing Committee

4.         Certified Auditors and Statutory Auditors of the Organization

5.         Federation representative

The Advisory Committee will resolve the complaint application within 45 days and inform the applicant with a majority decision. If the decision given is not accepted, the complainant may refer to Housing Societies Bye-law no. According to the nature of the complaint as per 174, a complaint can be made to the Registrar/ Cooperative Court/ Civil Court/ Municipal Corporation/ Local Authorities/ Police/ Federation.

If not satisfied with the decision given by the advisory committee of the institute, the complainant can file a complaint with the concerned registrar. The concerned registrar will be required to take action in this regard within 7 days and give a reply/decision within 30 days. However, if action is not taken within the prescribed period, the complainant can file a complaint with the District Deputy Registrar. They should give a decision after hearing the applicant within 45 days. If the district deputy registrar does not act in this way, a complaint can be filed with the divisional joint registrar. They should hold a hearing and give a decision within 60 days. Out of the above, if no action is taken by any of the offices, a complaint can be filed with the Cooperative Commissioner. They should give a proper decision within 60 days.

5.         Regarding Registration of Federation of Housing Societies at Ward Level

In Pune/Mumbai/Thane/Nashik district, action should be taken regarding registration of Federation of Housing Institutions separately on the lines of Area Local Management of Mumbai Municipal Corporation, ward and taluka wise.

6.         Regarding appointment of administrator

Due to various complaints against cooperative housing societies, the board of directors is dismissed and an administrator is appointed. However, it has been noticed that the members are making many complaints regarding the administrative work.

It is mentioned in this regard that if the registrars are convinced that it is necessary to appoint an administrator / authorized officer to the said institutions, they should appoint the person on the panel prepared by the divisional joint registrar office as the administrator / authorized officer while appointing the administrator / authorized officer. A 3-member administrative board should be appointed preferably. Out of which at least one member should be member of the organization and one member should be on the panel constituted by the office of the Divisional Joint Registrar, Co-operative Societies. Renewal of roll on the panel will be required before 31st March every year.

7.         Regarding audit

Audit of Housing Society is not done on time. The members do not get a copy of the audit report.. It is not found that objectionable matters are mentioned in the audit report, as these and many other types of complaints are received regarding the audit, the following points should be strictly followed while auditing housing societies. (a) The CA/Certified Auditor conducting the audit should be changed after a certain period of time.

An auditor cannot audit the same organization for more than three consecutive years. (b) Instructions have been issued as per the Government Decision dated 27/02/2018 regarding the matters to be checked in the audit so that disputes do not arise in the matter of audit. It mentions the barbie of what auditors should or should not do.

8.         Developing Computer Controls.

All the cooperative societies have been computerized and every society is keeping its information in computerized form, so it is convenient to update the information from time to time, so housing societies are also expected to keep their information in the computer.

9.         Appointment of manager to look after the working of housing societies

While dealing with many complaints of Housing Societies, it has been observed that many managing committee members / office bearers do not have sufficient knowledge about Co-operative Act and Bye-laws so the work is not carried out properly. Further action should be taken for that.

It is mandatory to appoint a manager who has full knowledge of Cooperative Act, Rules and Bye-laws. If the organization cannot afford a full-time manager financially, organizations should merge as per need. And the Federation should assist the organization in appointing a manager. The federation should form a panel of trained managers and appoint the manager from that panel.

(Anil Kawade)

Cooperative Commissioner and Registrar,

Cooperative Society, Maharashtra State, Pune.

Z:\OLD BEFORE 17500\02 GOVERNMENT CIRCULAR 980 OFFICE OF COOPERATIVE COMMISSIONER AND REGISTRAR COOPERATIVE SOCIETIES

Order in absence of DIN non-est as per CBDT Circular 19 of 2019

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Please find attached an update on the recent ruling of Delhi High Court wherein it is held that any communication including communication of assessment order not bearing a Document Identification Number (“DIN”) is non-est in law. 

Delhi High Court ( in the case of CIT vs Brandix Mauritius Holdings Ltd ITA No 163/2023) upholds quashing of assessment order passed by the Delhi Bench of ITAT where AO has not quoted DIN in the assessment order. The High Court holds that CBDT Circular No 19/2019 dated 14th August, 2019 to the effect that ‘any communication without DIN shall be treated as invalid and shall be deemed to never have been issued is binding on the Revenue. The High Court further holds such omission of quoting DIN in the body of the communication will not be saved by Section 292B of the Act. Dismisses appeal filed by Revenue against the order of ITAT. Oral Order dictated in open court.

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Julio Ribeiro salutes two heros of the present crisis–

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Two bright stars amid gloom

This is a tale of two IAS officers from Maharashtra. One is Iqbal Singh Chahal, hailing from Punjab, the son of a former Armoured Coarps officer, Lt Col MS Chahal, and the son-in-law of Ajit Singh Chatha, a former Chief Secretary of Punjab.

The other, Dr Rajendra Bharud, a tribal from the Bhil community, the son of a single mother who toiled in the fields of landowners to feed and educate her three children. He is presently Collector and District Magistrate of Nandurbar, a tribal-dominated district of Maharashtra, bordering Gujarat and MP. The Bhil community predominates in the triangle that comprises contiguous land traversing the three states.

But let me begin with Maharashtra’s CM, Uddhav Thackeray, whose positive leadership qualities enabled these officers to demonstrate theirs. When he installed Chahal as Municipal Commissioner of Mumbai, a post much coveted by the state’s senior bureaucrats, he told the officer that in the case of success in combating Covid, he (Chahal) should take all credit and feel free to speak to the media without looking over his shoulder for the CM’s approval. If, however, success eluded him, then the CM would take the rap and speak to the media. These are words and thoughts of a good leader. It is the duty of the political leadership to select the proper man for the right job and then leave the execution of the task to the one selected.

Chahal came with the reputation of cutting corners, at times, but getting the work done. Covid presented an opportunity to officers to prove their worth. People facing possible death want to know what you are going to do to give them hope and succour.

And that hope Chahal provided in ample measure. He assumed the mantle of the city’s Municipal Commissioner on May 8 and hit the ground running. He began with a mammoth meeting of his 24 ward officers and their seniors, many of them from the IAS, that very evening. The meeting lasted several hours, enabling the new MC to acquaint himself with the problems and the men and women who would be assisting him in the task of solving those problems.

He has emerged triumphant. The citizens of Mumbai have declared him a hero. Hard work, common sense and his father’s Army background all contributed to the success of his mission. The Control Room in his office was relieved of the thankless task of allotting beds. Twenty-four ‘war rooms’ were established in every municipal ward. Each of the wards had to keep track of the beds available on a daily basis and allocate them to patients in relation to the severity of each individual case. ICU beds with ventilators were assigned to the really bad cases and oxygen-hooked beds to those whose oxygen saturation level was below 92. Doctors were on duty in three shifts, their number having been supplemented by hiring 1,100 recently qualified medical graduates, each on a salary of Rs 50,000 per month. These young boys and girls are on an eight-hour shift in ambulances, 10 of which are on call in each war room at any one time. Nearly 800 Innovas were requisitioned and converted temporarily into ambulances. As the first point of contact in homes, these young doctors were to decide whether the patient required hospitalisation or whether he or she could be treated while at quarantine at home.

In short, Chahal restructured the entire Covid response mechanism and made it function as clockwork. He was ably assisted by a newly motivated staff. He is preparing for a third wave. Seven jumbo hospitals with a thousand beds each have been set up. Equipment, personnel, medicines, oxygen, etc., have been taken into account. The management of these hospitals will be entrusted to nearby private hospitals with established reputations. The idea is to associate the name of the well-known hospital with the new centre. All in all, a great job by a great son of India, and of Punjab! More power to his elbow.

The dedication to a task displayed by Chahal has found an echo in the achievements of Dr Bharud, a medical graduate selected for the IAS in 2012. This 33-year-old officer had to contend with primitive medical facilities and a population of 16 lakh, mostly illiterate or poorly educated, living in far-off villages and hamlets and lacking even simple mobile phones. He had to adapt to a system of communication that relied on physical contact through messengers. The villagers were reluctant to take the vaccination jabs and that was another job he was compelled to undertake — to educate his own people on the need for protection from the dreaded disease. He improvised, planned, and motivated his juniors and his might-have-been fraternity, the local doctors’ community, to rise to the occasion.

His exemplary work was brought to my notice by my friend and fellow activist, Shailesh Gandhi, who spent a few fruitful years with the Central government as a Central Information Commissioner appointed from the ranks of RTI activists. Shailesh intends to honour Dr Bharud in a virtual meeting later this month, where he has invited me to participate. It is important for citizens to acknowledge any exemplary work done by our public servants in order to motivate others of their ilk to work for the public good.

Dr Bharud’s district now has five oxygen plants installed in-house in the five hospitals spread over the district. It cost Rs 85 lakh to install each plant and it took just 10 days to construct each. The funds were available with the District Planning and Development Council. He recruited 200 doctors/nurses/ancillary staff to man the 2,000 extra beds he had added in the hospitals between the first wave and the second. He is ready for the third, should it strike.

Like I saluted Chahal, let me salute Bharud, another great son of a great country. While Chahal came with a small silver spoon in his mouth, Bharud is a shining example of what education and perseverance can do to lift the poor and the dispossessed out of the morass in which they are born.

: Julio Ribeiro

Cooperative housing societies will now have to pay GST on maintenance charges

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GST Appellate Authority for Advance Rulings (AAAR), Maharashtra bench rules that activities of societies or clubs constitute ‘supply’ and is liable for GST

The GST Appellate Authority for Advance Rulings (AAAR), Maharashtra bench has upheld an earlier order of the GST Authority for Advance Rulings (AAR) that goods and services tax (GST) is to be levied on maintenance charges collected by cooperative housing societies if the monthly subscription or contribution charged from members is more than Rs 7,500 per month and the annual aggregate turnover is Rs 20 lakh or more.

It should be remembered that in July this year the Central Board of Indirect Taxes and Customs (CBIC) had said that a cooperative housing society will have to levy and collect GST (at the rate of 18%) on the total amount collected as maintenance charges, if it exceeds Rs 7,500 per month, per member. It had also noted that those societies with an annual turnover of more than Rs 20 lakh or less will not have to register under GST.

Smaller CHS with an annual turnover of Rs 20 lakh or less do not have to register under GST. Thus, they do not have any GST obligation, irrespective of the quantum of maintenance charges. The AAR had held the CHS’s activities towards its members have to be a ‘taxable supply’ under the GST laws

The South Mumbai society that had filed an appeal with the GST Appellate Authority for Advance Rulings (AAAR), Maharashtra bench had like other societies collected maintenance charges from its members such as water charges, electricity charges, property taxes, contribution to repair and maintenance fund, contribution to the sinking fund, car parking charges, interest on default charges as also property taxes.

The housing society had sought a clarification on whether these activities carried out by it amount to supply and whether they are liable to GST as also whether they are correctly discharging their GST liability for which invoices have been raised on the members of the society.

The South Mumbai housing society had contended that they were not carrying out any business in terms of Section 2 (17) of the CGST Act 2017 as they were a cooperative housing society and were not engaged in any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity.

The Maharashtra AAAR has upheld the AAR order and found that various activities are undertaken by the South Mumbai housing society, such as management, maintenance, administration of the society property amounts to supply.

It has held that provision of any facilities or benefits by a club, association or society to its members against a subscription or any other consideration would be construed as ‘business’ as per section 2 (17) of the CGST Act.

It has rejected the appellant’s contention to distinguish between commercial and a co-operative society on facts and also dismissed its submission that a particular transaction cannot be considered as business under Income Tax Laws by clarifying that Income Tax Act, 1961 is inapplicable under CGST Act, 2017.

It has also distinguished the society’s reliance on the SC judgment in the case of Calcutta Club, basis which the Appellant contended that a society can’t be said to be doing business with its members as both the society and its members are one and the same, owing to the common Principle of Mutuality.

It has held that under the CGST Act, 2017 “service” under CGST Act has been rendered a very wide connotation and “person” under section 2(84) includes both “incorporated and unincorporated clubs” and thus clarifies that “…both these deeming fictions…..convey the intention of the legislature to do away with the principle of mutuality…….”.

In a case concerning the Calcutta Club, the Supreme Court had in 2009 passed an order which dealt with the ‘principle of mutuality’ which meant that the the society and its members are not distinct entities and thus the activities of the CHS do not constitute a ‘supply’ and hence do not attract GST. It had said that the society’s charges cannot be treated as a ‘consideration’ under Section 2 (32) of the GST Act.

“In the present case the society is undertaking various sorts of activities that include the management, maintenance, administration of the society property, payment of various statutory taxes like payment of electricity bill of the common area of the society, water tax levied by the local authority along with organizing various social, cultural and recreational events for the members of the society against the contribution called society charges which can be reasonably construed as “consideration” in terms of Section 2 (31) of the CGST Act 2017.

It further said that looking at all these activities undertaken by the society for the benefit of its members, it is clear beyond doubt that under the provision of the CGST Act 2017, the appellant is doing “business” in terms of the definition provided under clause e of Section 2(17) of the CGST Act 2017.Also, since the appellant is providing services to its members against the consideration, named as “society charges” in the cause or furtherance of business, therefore, the activities would be construed as “supply” in terms of Section 7 (1) (a) of the CGST Act 2017 and accordingly be liable to GST, the order added.

“With the wide definitions of ‘supply’, ‘services’, ‘business’ under GST laws, it is no surprise that activities undertaken by residential welfare associations for their members have been held to be leviable to GST. It is to be noted that, presence of profit motive is no more a pre-requisite to make such transactions liable to tax,” said Harpreet Singh, Partner, Indirect Tax, KPMG.First Published on Nov 17, 2020 02:15 pm

Vandana RamnaniAssociate Editor, Real Estate|Moneycontrol News

https://www.moneycontrol.com/news/business/real-estate/cooperative-housing-societies-will-now-have-to-pay-gst-on-maintenance-charges-check-new-rules-6125591.html