Category: Co-operative Societies

Online Registration of Leave and License Agreements in Maharashtra

yazdi57 Comments

HOUSING RENTAL E-REGISTRATION SINCE 01/02/2014

The Maharashtra government has introduced E-registration for Leave and License (Rental) Agreement(best way to do so is via www.anulom.com).Maharashtra governments E-registration module for the below cities
1) Mumbai
2) Mumbai Suburban
3) Thane
4) Nashik
5) Pune
6) Nagpur
7) Raighad
8) Aurangabad
9) Nanded

Prequisite for e registration are 
All Owners ,tenants and identifiers(witneses) should have Adhaar and PAN number + Biometric device to scan fingerprint

Click Here for more information on the steps to be followed.

Service Tax on Societies, Clubs & Associations

yazdiLeave a comment

The service tax department started demanding service tax on member’s contributions in 2005. In 2006, a “clarification” was issued confirming such demand. This is applied to member’s contribution towards expenses of a Cooperative Housing Society, membership subscription of associations, and similar collections.

Maharashtra Chamber of Commerce Industry Agriculture, circulated this demand through its Patrika of January 2008. Subsequently, there was a meeting with the finance secretary; where the finance secretary reminded members that contributions below Rs.3000 were exempted. This satisfied most members and the issue was abandoned.

Litigation in Kolkata and Delhi High Courts confirmed that where every member was a share-holder and every share-holder was a member, there was no provision of service from one entity to another and therefore the application of service tax does not arise. However, this stand has not been accepted by the service tax department. A 2014 circular confirms service tax on contributions to Resident Welfare Associations.

At present, several housing societies are collecting and paying service tax. Associations, clubs and chambers of commerce are also collecting tax on membership subscriptions.

A report in Times of India of 2015 Jan.13 states that two societies have secured a favourable decision in the Mumbai High Court. This is good news not only for the two societies; but also for thousands of other societies and associations. It states:

“The CESTAT decision is the first of its kind for the western zone. The tribunal, based on decisions of other jurisdictions, accepted the principle of mutuality – the society provided services to itself which could not be subject to service tax. However, finality will be reached only once the Supreme Court adjudges on a similar matter pending before it”, said Bakul Mody, chartered accountant, who represented Mittal Towers.

We should be thankful to the two societies and Bakul Mody for taking up the fight. Now let us support them by joining in the fight.

M. B. Damania.

2015 Jan.13

Click Here for copy of the order

 

Housing Societies Service Tax

Income Tax Exemption on Tenants under Redevelopment

yazdiLeave a comment

Where a tenant is provided accommodation in the new building on ownership basis, the value of accommodation for the purpose of determining the capital gains shall be the fair market value of the tenancy rights transferred and the cost of acquisition being ‘Nil’, the entire value will be subject to capital gains. However, since the tenancy rights are exchanged for the ownership of a flat, it can be considered as purchase of a residential house by investing the full value of consideration received on surrender of tenancy rights and the tenant would be entitled to claim the reinvestment benefit available under section 54F, subject to compliance of the certain conditions stipulated therein. However, serious difficulties may arise where new premises received in lieu of surrender of tenanted premises are commercial premises, since in such cases the tenant shall not be able to claim the reinvestment benefit available under section 54F as the reinvestment is in a property, other than a residential house. Hence, extreme care should be taken while drafting the agreements so as to ensure that the tenant does not end paying huge capital gains tax on the basis of market value of the tenanted premises upon surrender of tenanted premises for the commercial premises. In such a situation, it is advisable for the tenant to pay nominal consideration to the landlord i.e 120 month’s rent for acquiring ownership rights in the commercial premises.

Click Here for the detailed explanation

Latest Judgements on Income Tax related matters in Redevelopment process

https://timesofindia.indiatimes.com/india/Compensation-for-redevelopment-not-taxable/articleshow/53892970.cms

June 30 new deadline for hsg society polls

yazdiLeave a comment

Cooperative housing societies can now elect managing committees by June 30 instead of the earlier deadline of December 31. The state legislature recently cleared the deadline extension.

The state had told societies to complete elections by December 31. Experts said the cut-off date was “unrealistic“ since many societies had not held elections over several years. “The extension will help us comply with due procedure with an extended period for hearing of objections over nominations,“ said a society functionary.

After the deadline was initially set at December 31, many societies had been asking members to attend urgent meetings to decide on the election agenda. Some had issued an ultimatum to members and told them to pay pending dues within a short span of time to become eligible voters. Moreover, several rounds of meetings had to be held by societies to make members aware of the new regulations before going in for elections.“Several members live abroad or out of the city and have rented their flats. We need to do the groundwork to ensure free and fair polls,“ said a member from a housing society in Chembur.

“Our society recently issued a notice asking us to pay maintenance and repair dues within four days. How can we shell out the amount in such a short span of time? They should give us at least a fortnight,“ said a resident of Shivaji Park, Dadar.

Experts said they were getting many calls from anxious residents to convene meetings to spread awareness on new rules and help housing societies comply with the new regulatory administration.

“We had started conducting meetings to create awareness among members, auditors and employees and labourers working in housing societies in order to ensure maximum participation of societies and their members in the elections,“ said Surendra More, vice-chairman of Bombay Suburban District Housing Federation.Ramesh Prabhu, president of the Maharashtra Societies Welfare Association, said his organization was guiding people on how to file all the details online and upload audit statements. Elections of all housing societies are being conducted through secret ballot, provided there is no unanimity over managing committee candidates.

December 29 2014 : The Times of India (Mumbai)
by Chittaranjan Tembhekar, Mumbai

Times of India issue dated 29 December 2014 - June 30 new deadline for hsg society polls

 

By overstaying, a licensee cannot claim tenancy rights

yazdiLeave a comment

law

With the passage of the time the system of giving properties on leave and license basis in Maharashtra is taking roots, but still a good number of the property owners are apprehensive; because they are not sure that they would get back the possession of the properties on the expiry of the term.  However, in view of the latest judicial pronouncements, such fear seems unfounded, provided legal requirements are complied with.

Click Here for the recent judgements and precautions to be taken

By Accommodation Times News Services

New Election procedure for Co-operative Housing Societies

yazdi16 Comments

The Government of Maharashtra has amended the Maharashtra Cooperative Societies Act, 1960 in 2013 and introduced new election procedure for cooperative housing societies.

We have explained the procedure as per the Act regarding elections to be conducted by the cooperative housing societies.  We trust that you will find the same useful.

Click Here for the full procedure By Accommodation Times News Services By Sunil Deshmukh, District Deputy Registrar (Retd.), For K.K. Ramani & Associates

Online Society Registration

yazdi1 Comment

CA Shri. Ramesh Prabhu, Chairman, MSWA has launched Mswa News Channel on YouTube. We have uploaded several videos related to various issues of co-operative housing society.

Here is the video on the present burning topic i.e.  “ON LINE SOCIETY REGISTRATION”. You are requested to view this video for getting more information & knowledge.

Suggest repair cost share for old building owners, tenants: HC

yazdiLeave a comment
The Bombay high court on Tuesday directed the Mhada to suggest a formula for sharing cost of repairs to tenants and owners of old dilapidated buildings in Mumbai.

A division bench of Justice V M Kanade and Justice Anuja Prabhudessai heard a petition by two residents of one of five ground-plus-two-storey buildings owned by the H B Wadia Fire Temple Charity Fund. The petitioners said the landlord-Trust and (Mhada) have cited financial inability. The total expenditure estimated by the court appointed architect is around Rs 75 lakh.

Subsequently, residents’ advocate Raju Moray and the Trust’s advocate Khushroom Davierwalla told the court that their clients are ready to share one-third cost of repairs. Mhada’s advocate said it could contribute only Rs 22 lakh. The judges directed the Trust to take approval for reimbursement from Mhada before appointing a contractor and begin work under a structural engineer. The petitioners said they had also requested the Bombay Parsi Punchayet to look into the matter as the residents are Parsis.

Disposing of the petition, the judges said there are several old buildings in Mumbai which are occupied by tenants and are likely to collapse if not repaired. “We feel that the Mhada should also make such suggestion where it is not able to bear the cost of repairs. The costs can be shared and the building can be repaired,” they concluded.