For a detailed write-up on Non-Occupancy Charges in Society, (including the definition, conditions, how much to charge, and much more) by Heman Agarwal – Click Here
Category: Co-operative Societies
Videos on Co-operative Matters
CA Shri Ramesh Prabhu, Chairman MSWA has launched MSWA news channel on You Tube. MSWA has uploaded more than 250 videos related to various issues and subjects of Cooperative Housing Societies. You are requested to watch these videos and give your opinion and suggestions on it.
You may also ask questions on any Housing related matter. Our expert team will answer your each and every query. If you are interested in any particular video related to Housing Society matter, we will upload the same for the benefit of Society at large.
We are providing video link for the same herewith.
https://www.youtube.com/channel/UCJcDvSHSxxnlgQdPQS6X87Q
Please send in your emails to : rsprabhu13@gmail.com
Thanking You
Mr Kishor Kanade
Video Editor
Maharashtra Societies Welfare Association (Regd.)
A-2/302, Laram Centre. Opp. Platfrom No.6,
Andheri (W), Mumbai – 58
Tel : 022-42551414/26248589/65
Email ID : rsprabhu13@gmail.com
Associate Members
There is a lot of confusion about who can be an Associate Member in a Co-operative Housing Society, based on the new regulations. This month’s issue of MSWA’s Housing Societies Journal lists out several FAQs which are enlightening.
Click Here to view
What is Deemed Conveyance ?
We are extremely thankful to CA Shri. Ramesh Prabhu, Chairman, MSWA for forwarding us MSWA News Channel on “You Tube” for Public benefit:
This video includes answers of following questions:
1. What is deemed conveyance ?
2. What are the advantages of deemed conveyance ?
3. What are the disadvantages of deemed conveyance ?
4. Which are the ways to get conveyance ?
5. Which are the documents are required for conveyance ?
6. What is the meaning of Promoter ?
7. What is the procedure for hearing ?
8. Which acts and rules are applicable ?
9. Which departments have to be visited ?
Here is the Video
Courtesy : Jeby Patel
No Stamp Duty Required for transfer of property to relatives
GOVT. WAIVES STAMP DUTY ON TRANSFER OF LAND / FLAT TO KIN or FAMILY MEMBERS
Hon’ble Revenu Minister Eknath Khadase announced in Assembly on 25-03–2015 that Govt. waives stamp duty on transfer of land or flat immovable property to Kin or family members. He announced that now immovable property such as land, house or flat can be transferred to Owner’s Children or even to blood relatives simply by executing transfer deed on Rs. 500/- stamp paper without paying stamp duty and registration fee. This announcement will give good relief to the families of transferors as they will not require to pay 5% stamp duty at market value as per ready Reckoner. Minister further clarified that in such an event it will be sufficient if transfer document is executed on Rs.. 500/- stamp-paper.
He further clarified that the decision to waive stamp duty on property transferred to heirs is taken on account of large complaints received from farmers who were otherwise unable to transfer farming land to their family members due to heavy stamp duty for such transactions. H’ble Chief Minister on another issue of TDR clarified in the assembly that Govt. is framing a new policy by which TDR will be indexed to the Ready Reckoner rate in order to prevent developers earning buge income from use of TDR of one area to another. The Ready Reckoner rate of the area where it is being utilized will now apply. S.S. Mahajan Source Times of India dt. 26-3-2015
Please also see this link https://www.e-stampdutyreadyreckoner.com/Gift.html
Here is the link to the website which has a link to the circular too http://accommodationtimes.com/no-stamp-duty-required-for-registration-of-gift-deed-between-blood-relatives/ You may read the comments also, which will give you a good idea. Here is the english version of the same – http://www.npci.org.in/documents/Annexure_4_Maharashtra_Stamp_(Amendment)_Act_2015.pdf
Some more views available here https://www.kaanoon.com/17181/transfer-of-property-in-blood-relation
Grievance Redressal in Co-operative Housing Societies
Grievance Redressal in Co-operative Housing Societies by none other than Shri Devendra Fadnavis Chief Minister, Government of Maharashtra https://aaplesarkar.maharashtra.gov.in/en/ J.B.Patel (Jeby) RTI & Housing Societies’ Activist Mobile:9820538570 FIGHT FOR YOUR RIGHT !
Voluntary Donations to Societies by members are exempt from Income Tax
Online Registration of Leave and License Agreements in Maharashtra
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
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
Income Tax Exemption on Tenants under Redevelopment
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
Consumer Resources 