Addresses of Co-operative Officials – 01.01.2014
Click Here for addresses_of_Co-operative_Officials_-_01.01.2014
J.B.Patel (Jeby)
RTI & Housing Societies’ Activist
Mobile:9820538570
FIGHT FOR YOUR RIGHT !
Addresses of Co-operative Officials – 01.01.2014
Click Here for addresses_of_Co-operative_Officials_-_01.01.2014
J.B.Patel (Jeby)
RTI & Housing Societies’ Activist
Mobile:9820538570
FIGHT FOR YOUR RIGHT !
We are extremely thankful to Ms.Heena Sampat for the complimentary copy of :
(23) HOUSING SOCIETY MATTERS – VOLUME – II – ISSUE NO. 10 – 01.07.2014 TO 15.07.2014
Click Here to read the entire interesting issue
SERVICE TAX ON MEMBER’S CONTRIBUTIONS
Circular No. 175/01/2014-ST dated 10-Jan-2014, issued by Under-Secretary to Government of India, Ministry of Finance, contains following points:
(Note: RWA = Resident Welfare Association)
This circular mentions only RWAs i.e. our CO-OPERATIVE HOUSING SOCIETIES. However the same principle is also applied to club memberships, membership fees of associations and chambers of commerce, etc.
Such service tax collection has been struck down by service tax tribunals and high courts under the principle that where every member is a share-holder and every share-holder is a member, there is no provision of service from one entity to another.
Most of us are un-able or un-willing to fight it out in court. However, the least we can do is to ask for a refund after paying the tax.
M. B. Damania.
2014 Jul.10.
Please find below the circular no. 175/01/14-ST dated 10.01.2014. Service tax is not applicable on maintenance charge collected by society [limit Rs5000 per month]. Emphasis added.
Dr. P.K.Banerjee
______________________________________________________________________________
Circular No.175 /01 /2014 – ST
F. No.354/237/2013-TRU
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise& Customs
Tax Research Unit
North Block, New Delhi
10th January, 2014
To
Chief Commissioners of Central Excise and Service Tax (All), Director General (Service Tax), Director General (CentralExcise Intelligence), Director General (Audit), Commissioners of Service Tax (All), Commissioners of Central Excise and Service Tax (All).
Madam/Sir,
Subject: Levy of service tax on services provided by a Resident Welfare Association (RWA) to its own members – regarding.
Service tax on ‘club or association service’ which covers Resident Welfare Association (RWA) was introduced with effect from 16.06.2005, vide section 65(105)(zzze) read with section 65(25a)[(25a) was later renumbered as (25aa)]. Under the positive list approach which was followed prior to 1st July 2012, exemption was available under notification No. 8/2007-ST dated 01.03.2007, if the total consideration received from an individual member by the RWA for the services does not exceed three thousand rupees per month. This notification was rescinded vide notification No. 34/2012-ST dated 20th June 2012, with effect from 1st July, 2012.
2. Under the negative list approach, with effect from 1stJuly, 2012, notification No.25/2012-ST [sl.no.28 (c)] provides for exemption to service by a RWA to its own members by way of reimbursement of charges or share of contribution up to five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members.
Certain doubts have been raised regarding the scope of the present exemption extended to RWAs under the negative list approach. These doubts have been examined and clarifications are given below:
| Sl. No. | Doubt | Clarification |
| (i) In a residential complex, monthly contribution collected from members is used by the RWA for the purpose of making payments to the third parties, in respect of commonly used services or goods [Example: for providing security service for the residential complex, maintenance or upkeep of common area and common facilities like lift, water sump, health and fitness centre, swimming pool, payment of electricity Bill for the common area and lift, etc.]. Is service tax leviable?
(ii) If the contribution of a member/s of a RWA exceeds five thousand rupees per month, how should the service tax liability becalculated? |
Exemption at Sl. No. 28 (c) in notification No. 25/2012-ST is provided specifically with reference to service provided by an unincorporated body ora non–profit entity registered under any law for the time being in force such as RWAs, to its own members.
However, a monetary ceiling has been prescribed for this exemption, calculated in the form of five thousand rupees per month per member contribution to the RWA, for sourcing of goods or services from third person for the common use of its members.
If per month per member contribution of any or some members of a RWA exceeds five thousand rupees, the entire contribution of such members whose per month contribution exceeds five thousand rupees would be ineligible for the exemption under the said notification. Service tax would then be leviable on the aggregate amount of monthly contribution of such members. |
|
| (i) Is threshold exemption under notification No. 33/2012-ST available to RWA?
(ii) Does ‘aggregate value’ for the pusrpose of threshold exemption, include the value of exempt service?
|
Threshold exemption available under notification No. 33/2012-ST is applicable to a RWA, subject to conditions prescribed in the notification. Under this notification, taxable services of aggregate value not exceeding ten lakh rupees in any financial year is exempted from service tax. As per the definition of ‘aggregate value’ provided in Explanation B of the notification, aggregate value does not include the value of services which are exempt from service tax. | |
| If a RWA provides certain services such as payment of electricity or water bill issued by third person, in the name of its members, acting as a ‘pure agent’ of its members, is exclusion from value of taxable service available for the purposes of exemptions provided in Notification 33/2012-ST or 25/2012-ST ? | In Rule 5(2) of the Service Tax (Determination of Value) Rules, 2006, it is provided that expenditure or costs incurred by a service provider as a pure agent of the recipient of service shall be excluded from the value of taxable service, subject to the conditions specified in the Rule.
For illustration, where the payment for an electricity bill raised by an electricity transmission or distribution utility in the name of the owner of an apartment in respect of electricity consumed thereon, is collected and paid by the RWA to the utility, without charging any commission or a consideration by any other name, the RWA is acting as a pure agent and hence exclusion from the value of taxable service would be available. However, in the case of electricity bills issued in the name of RWA, in respect of electricity consumed for common use of lifts, motor pumps for water supply, lights in common area, etc., since there is no agent involved in these transactions, the exclusion from the value of taxable service would not be available. |
|
| Is CENVAT credit available to RWA for payment of service tax? | RWA may avail cenvat credit and use the same for payment of service tax, in accordance with the Cenvat Credit Rules. |
3. Trade Notice/ Public Notice to be issued. Hindi version to follow.
[Raj Kumar Digvijay]
Under Secretary to the Government of India
Red alert! Redevelopment Greed is making housing societies neglect maintenance & repair
2 July 2014, Mumbai: The return of monsoons is good news to everybody, but as always, there will be severe casualties in aging and ill-maintained buildings in every metro, including Mumbai. One may safely predict that at least five buildings will collapse in Mumbai alone, especially on the days with the heaviest rains, simply because of the additional weight of several thousand kilograms of absorbed rainwater that the dilapidated structures will have to bear. This weight is unevenly distributed on a weakened RCC structure, causing structural collapse.
The following problems are perennial and systemic:
1) The buildings of Mumbai and every other metro are aging. Every passing seasonal cycle of summer, monsoon and winter are causing further deterioration in the cement and steel of RCC structures by rusting and cracking. Therefore, every passing year, the load-bearing capacity of the RCC of every building deteriorates by small percentage like 0.2 to 1%.
2) Older buildings deteriorate at a faster rate e.g. 1% per year. If they are well-maintained, this rate of deterioration may be reduced to 0.5%, effectively increasing its life span by many years.
3) Unfortunately, many buildings have been made into “sick” buildings over the past decade by short-sighted cooperative societies neglecting them, in the lust for getting them declared as “dilapidated”, so that they go into commercial redevelopment. The load bearing capacity of the RCC of such buildings deteriorates by 5-10%. These buildings are like ticking time-bombs, waiting to collapse.
4) In the monsoon, the rain-water seeps into the walls and ceilings of such neglected structures, increasing their weight by several thousand kilograms. This additional weight is distributed unevenly on the RCC frame, making it extremely vulnerable to sudden structural failure. These buildings cannot continue to be occupied. Ignoring them is a criminal negligence on the part of the government and municipal corporations.
5) There is no civic body which has the necessary mandate for vacating and demolishing demolish hundreds or thousands of such critical buildings before they collapse due to “natural causes” in the coming monsoons. If such a body is not created, there is simply no alternative to redevelopment – whether voluntary or forced. These must be demolished and rebuilt under supervision of an empowered government body. Unfortunately, such an empowered body does not exist!
6) A timetable for performing emergency repairs on thousands of other buildings is a must. These are not yet critical, they will inevitably become critical and dangerous if neglected for another 3-4 years. This must also be done under supervision of an empowered government body.
7) Unfortunately, it is financially unviable for all the thousands of buildings of Mumbai to be redeveloped and rebuilt simultaneously. Therefore, a priority list will have to be made by the government agency after scrutiny.
8) Many MLAs, MPs and corporators are builders, or have invested in building industry. These persons are aware of the deterioration, but they are using their knowledge for their own private benefit. The knowledge of these persons must be harnessed for public good. Unfortunately, such politicians are actively preventing any proactive planning from happening, for fear of harming their own interests!
9) On a conservative estimate, more than 80,000 flats are lying vacant all over Mumbai. They belong to builders, estate agents and investors. Such flats should be requisitioned by the government and municipal corporations, and used for immediately resettling the people living in dangerous buildings.
10) For all the above-mentioned work, which is urgent, new laws needs to be passed,and a new government agency is required to be constituted under the urban development ministry.
Problems Caused by Redevelopment Greed:
Since redevelopment started in 1991 about two decades ago, and builders could augment the FSI (Floor Space Index) of the land by purchasing TDR (Transfer of Development Rights), cooperative housing societies started neglecting their structures. Seduced by builders who promise larger houses and new buildings, building societies have been keen to steamroll opposition to their redevelopment proposals by individual members by deliberately allowing their building to deteriorate, so that structural auditors can declare them as “dilapidated”.
Earlier, it was a nightmare for a society to be told that its building was structurally unsound, and managing committee members and general body members alike were anxious to avoid it by regular re-plastering, painting and repairing. But in the last two decades, a report from structural engineers saying that the building is “dilapidated” or is in need of “major repairs” has been the dream-come-true of every managing committee, because it legitimizes their quest for redevelopment.
Redevelopment is a gravy-train by which everybody gets to make money, and especially civic authorities who give various building permissions, cooperative department officials, and the managing committees of societies. Many residential buildings aged around 30 and above would have been in a relatively better state, were it not for this lust for redevelopment. Despite a fair number of stalled redevelopment projects, and the opposition by cautious members in every society, the greed-is-good ethos of the majority of members in almost every society ensures that this gravy train is gaining momentum.
Brief overview of Mumbai’s redevelopment over the last two decades: http://tinyurl.com/History-Mumbai-Redevelopment
Over 10 percent of Mumbai’s 30,000-odd society buildings are currently suffering from varying degrees of redevelopment-driven neglect by their managing committees, which collect money for their Repair Fund and Sinking Fund every month, but never spend for repairs and maintenance, Hoping to reap windfall gains from redevelopment, the managing committees favour a dilapidated appearance, which sends a come-hither signal to builders.
Sadly, every such society will not enter into the process of redevelopment swiftly; the overwhelming majority of old buildings will have to wait for many years before their redevelopment happens. Hence, residents are condemned by their greedy and negligent managing committees to live for long in buildings with fast-deteriorating RCC columns, beams and slabs.
In every society, one or two people are fighting a losing battle against this commercially-driven madness. They are seeking better maintenance of their societies. Most often, their voices are raised only at meetings, and this makes them pariahs. Far from recognizing that their words are in the common interest, a majority of their neighbours consider them mad, and shun them. Their managing committees are quick to paint them as anti-social villains opposed to the prosperity that will be brought about by redevelopment.
One such person is Rohit D’Souza (9819199863, rohitpdsouza@gmail.com), a young sportsman of Mulund. Due to the constant leakage and seepage from the rooftop tank, and the consequent rusting and deterioration of the building structure, Rohit and his neighbours fear for their lives, and have written many letters to their building secretary and to to MCGM’s Ward Officer for T-Ward. But their letters may as well have been written by residents of thousands of other residents of Mumbai, who are in the same boat: http://tinyurl.com/Please-repair-tank
Numerous societies are in exactly the same boat. Improper structural maintenance by societies due to greed, cost cutting, ignorance, unavailability of skilled labourers, disputes between members etc. is endangering the lives of thousands of families living in Mumbai. The steel in the RCC columns, beams and slabs has rusted and become exposed in many buildings, and Rohit’s building is only a sample of what thousands of buildings are currently looking like. Like Rohit, lakhs of people in Mumbai region are saying, “We are not opposed to redevelopment per se, but we are definitely opposed to the deliberate neglect of our buildings, which is a growing threat to our lives.”
But are the government and municipal authorities listening? And more importantly, are the managing committee members listening?
Or will they, like the Municipal Corporations of Mumbai, Mumbra, Thane etc. wake up only after the building crashes down?
Issued in Public Interest by
Krish
PS: After reading this, if residents of societies wish to gently start reminding their societies to maintain the building, they may use this word file as a format: http://tinyurl.com/sample-letter-to-society
MAHARASHTRA ACT No.XVI of 2013 (First Published, after having received the assent of the Governor, in the “Maharashtra Government Gazette”, on the 13th August 2013):
Quote: State Co-operative Election Authority. “73CB (15): Notwithstanding anything contained in this Act, the rules or the by-laws of any co-operative society, the election to the committee and consequent election of the office-bearers which is due on the date of commencement of the Maharashtra Co-operative Societies (Amendment) Act, 2013, or may become due after such date, until 31st March 2013 shall be held before the 31st December 2013.Unquote.
Please refer again:
MAHARASHTRA ACT No. XXXI OF 2013 (First Published, after having received the assent of the Governor, in the “Maharashtra Government Gazette”, on the 20th December 2013).
An Act to further amend the Maharashtra Co-operative Societies’ Act, 1960
Quote: WHEREAS it is expedient further to amend the Maharashtra Co-operative Societies Act, 1960 for the purposes herein after appearing ; it is hereby enacted in the Sixty fourth year of Republic Of India as follows:-
1. This Act may be called the Maharashtra Co-operative Societies’ (second Amendment Act, 2013).Amendment of Section 73CB of Mah.XXIV of 1961.
2. In Section 73CB of Maharashtra Co-operative Societies’ Act, 1960 in sub Sub Section (15), for the words, figures and letters”before the 31st December, 2013″ the words, figures and letters “before the 31st December 2014” shall be substituted. Unquote
J.B.Patel – Jeby
We are extremely thankful to the Editor Heena Vinod Sampat for sending us a copy of extremely useful and informative “HOUSING SOCIETY MATTERS” which I am forwarding for your benefit. I am sure you will appreciate the gesture.
Some major highlights :
Click Here for the full issue
J.B.Patel (Jeby)
RTI & Housing Societies’ Activist
Mobile:9820538570
FIGHT FOR YOUR RIGHT !
Sometimes, the managing committee of your co-operative housing society refuses to give you crucial documents or information. This happens when you have a dispute with the society. How to get those documents?
Click Here for some practical solutions / suggestions
Also remember the following :
Please Study these Acts & Rules to strengthen yourself:
(i) MCS Act 1960
(ii) Model Bye-Laws of Coop Housing Societies
(iii) MCS Rules 1961
(iv) RTI Act 2005
(v) Maharashtra State RTI Rules
(With standard formats for RTI application, first Appeal & Second Appeal)
(VI) Consumer Protection Act
JEBY’S GUIDE IS CREATED BY SHRI J.B.PATEL (Jeby) – CHS ACTIVIST for free distribution.
Those aggrieved in Co-operative Housing Society matters may seek his free guidance and help.
SHRI J.B.PATEL (Jeby,) Mobile: 98205 38570. Shri Krish, Mobile: 98215 88114
Email: (jebypatel@rediffmail.com )
FIGHT FOR YOUR RIGHT!
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DC Rule amendment for MHADA Societies –
For redevelopment of existing housing schemes of MHADA, containing
(i) Economically Weaker Section (EWS) or
(ii) Middle Income Group (MIG) or
(iii) Higher Income Group (HIG) houses with carpet area less than the maximum carpet are prescribed for MIG,
the total permissible FSI shall be 3.0 on the gross plot area (exclusive of Fungible FSI)
Sharing of the Balance FSI and other rules also included
DCR Rule amendment MHADA plots
Courtesy : J.B.Patel (Jeby), RTI & Housing Societies’ Activist, Mobile:9820538570