Category: Housing Society

Buying a property is a dream for many and when it is in a white-picket fence community the achievements come with being a part of a more diverse and inclusive society. Therefore, owning an apartment in a gated community also means shared responsibilities to some extent. Society maintenance charges are one of the regular costs that occur to permanent or tenant residents.

What is society’s maintenance charge?

Society maintenance charges which the residents pay to the association to upkeep the common areas of the community. This is the operational charge which is levied on the permanent resident or owner of a particular unit. It is an essential expense or can be considered as one of the investments for convenient living. Every amenity, common area, or service you require in your housing complex is included in the society maintenance charges. These ready-to-move-in apartments are encircled with top-notch safety, security, and convenience. Resident Welfare Association (RWA) or Society Management Committee is responsible to lead the process by setting housing society maintenance charges rules and regulations adhering to the government guidelines.

Types of Society maintenance charges

Based on the nature of shared areas and common facilities society maintenance charges are levied. It also varies depending on the status of the unit. If the unit is not occupied by the owner and it is vacant or leased to tenants then the charges are calculated accordingly. As per the guidelines provided by the bye-laws, the charges can be categorized in:

Parking charges

Residents who own vehicles are charged a particular amount for the parking place they book. The rate for society maintenance bill depends on the type of vehicle like two-wheeler or four-wheeler.

Service charges

Any maintenance required for the common areas and the occurred expense for it is included here. Also, to take care of the property materials the charges are divided among the residents equally with a minimum rate of 0.75% per annum.

Water charges

As a mandatory charge, the amount charged from every resident can be fixed or fluctuate. Generally, it is set depending on the number of inlets provided for the exact unit.

Non-occupancy charges

In the case of your vacant place or unit, the owner must provide a non-occupancy charge which can not be more than 10% of the service charge.

Sinking fund

The RWA always possesses an amount for unforeseeable situations and risk management. This is charged 0.25% of the construction charge for each flat.

Insurance charges

This charge is not compulsory only if the association has insured for any common property then the amount is added to the society maintenance bill.

Lease or Rent charges

Society maintenance charges for it are levied based on the built-up area of the flat or unit.

Other charges

This section is variable as decided by the society management team.

RERA guidelines

In general, the maintenance charges are levied based on the carpet area of the unit. The extra amounts are determined based on the services the residents are availing. Although, the government has fixed some rules under RERA, Real Estate Regulatory Authority keeps it transparent and reasonable.

RERA rules for the society maintenance charges:

Under the RERA guidelines, the maintenance charges can be collected based on two specific ways.

The owner or the buyer of the property has to pay an amount for the building maintenance.

For a certain time, the builder of the property maintains the entire project. The builder can demand the charges from the owners of the properties.

Some other RERA rules that must be adhered as follows:

Until any property is handed over to the RWA till then the builder must provide for the maintenance of it. The builder can get back the amount from the property buyers under the society maintenance charges act under section (4) (d).

The builder must clear out the charges in the allotment letter. The letter can be sent after the buyer pays for the booking amount.

The buyers do not have to pay any kind of ad-hoc charges as mentioned in the RERA Act 2016.

Non-disclosure of any kind of charge can create confusion among buyers.

The state government can set the highest amount of the society’s maintenance charges.

The builders or associations can not demand any extra amount except the ones mentioned in the letter.

The charge can variable from resident to resident as it is calculated based on the carpet area of the flat.

The collection frequency must be determined by the association or the builder.

The GST charge of @18% can be levied if the maintenance costs more than 7500 from the residents.

How are maintenance charges calculated?

As discussed before the maintenance charges can differ for each resident. Keeping in mind every resident’s grievance and discomfort the calculation of society maintenance can be different and they can use different calculation systems.

1. Per square feet based calculation method

This system is only used when the apartments are of different sizes and carpet areas are not specific.

2. Equal fee

The charges are pre-determined and not variable every month in this method. This is only used when the size of the apartments is exactly the same or can be approximately different.

3. Hybrid fee

This method is created by combining the mentioned two methods. For a fair process, the square feet-based charges are for clubbed components such as repair or sinking funds. Whereas, equal fee is levied on other categories for a few common areas like lift and service fees.

Why digitalized platform is more preferable?

Seems quite confusing, right? Well, it can be with so many rules, regulations, and calculations. The only solution would be to provide strong technical support and expert assistance. Therefore, switch to automation and be more efficient and productive. Shift to a fully digitalized process for society maintenance charges calculation. Software that can cut costs also makes it a time-saving process. Also, a GST complaint tool can help it more for keeping the process fully automated.

Conclusion

The ultimate solution would be to follow a proper method and be more transparent. When the fund is built on public contribution it must follow the exact guidelines of government. For any inconvenience caused, the owners can approach RERA as per their state and get any information out of the builder. RERA takes necessary actions for any complaint.

 

The Goods and Service Taxes (GST) buyers pay while purchasing any property are different from maintenance charges GST.  After one purchase a property in a housing complex, the associated GST with maintenance charges is one of the must-pay for its inhabitants.

Generally, maintenance charges are collected from the residents to upkeep the common areas of the society. Apart from it, several amenities are provided to them for convenient, tranquil, and wholesome living in exchange for some monthly fees also applicable with GST. Generally, the entire charges and fees are applicable for GST collection. However, the amount can not be collected randomly as there are specific GST rules in housing society.

GST Applicability on Housing Societies

A circular was issued by the government Circular No.109/28/2019- GST on “Issues relating to GST on a monthly subscription or contribution charged by a Residential Welfare Association (RWA) from its members” on July 22, 2019. The RWA collects the charges adhering to government rules and regulations. Though not all residents have to pay the amount as there are parameters and criteria before the association can levy the GST charges.

Criteria for GST applicability

Do you know how much you are supposed to pay for maintenance purposes? As every product and service has different GST charges check these criteria before you start living in your dream house. Every community must follow these GST Rules in Housing Society.

The main two criteria for charging GST are:

GST is only applicable only to those housing societies which have yearly maintenance cost turnover cost above 20 lacs.
Also, if a housing society contributes over 7500 per member to Resident Welfare Association then the GST rate on residential flats is 18% GST per month.

Elements for maintenance charges on flat and calculation process  

The housing societies cannot add GST on any element which is being billed in the invoice to the members for maintenance collection. The housing society can charge the residents GST on the member’s contributions to the repair funds paid to the society following the maintenance charges on flats. Sinking funds, car parking funds, and non-occupancy funds, id collected by the society as maintenance charges not as deposits these can also be charged under GST as per GST Rules in Housing Society. Also,

Input Tax Credits  

The ITC or Input Tax Credit of GST paid for capital goods like lawns, furniture, generators, water pump and etc., and other goods like sanitary or hardware fillings, pipes, taps and etc. must be charged by the Residents Welfare Association. Apart from these, Input services like repair and maintenance services are also included under GST on the maintenance amount allotted for each residential building.

Exemptions  

On these exempted items the housing does not need to charge GST for each item on the maintenance bill. The exempted heads for GST are Water Tax, Municipal Tax, Non-agricultural Land Tax, and Property Tax are exempted from GST in the CAM bill collection process.

Reverse GST charge mechanism  

Often the housing society face of paying different GST for different goods and services. Though the residents are entitled to pay 18%  to the housing association.

Although the housing society cannot directly reduce the GST rate applied to maintenance charges for its customers, it does have the option to lower the overall maintenance charges. This would allow society to pass on the benefits of input credits that it receives. The actual extent of the reduced maintenance charges would depend on the available input credits and any liability under the reverse charge mechanism, if and when it is implemented.

Conclusion

Before purchasing a property the buyer must find out if the builder has a valid GST no. If the builder is charging maintenance for the property still under construction find out the proper reason before paying any amount. Properly know the GST rules and regulations for housing societies for safe and secure living.

Investing in the right residential property without good market research and knowledge can never be done. Vivid ideas about the property details and current market scenarios can lead you to wrong decisions. When deciding to buy a property in Kolkata making the right choice is difficult. The city’s vibrant culture is home to an uncountable number of housing societies. Housing societies that offer a host of amenities with a comfortable living space can be suitable for a complete urban living experience.

Why choose a posh housing society to reside in Kolkata?

Better property value: While investing in any property the key concern remains return on investment (ROI). Apartments in posh areas cost high but always is a good investment option. Buyers can enjoy a profitable deal in the future.

Integrated living and lifestyle: People now do not only buy properties, but they also focus on an elegant lifestyle. Living in posh areas can bring the residents and plethora of amenities.

Safety and Security: Digitalized gated community management systems are being adopted by most of the housing societies in Kolkata. This is keeping the administration and management up to date about any activity in the Residential community. Also, strong society rules and regulations keep the premises more secure as not adhering to those can be a legal offense.

Numerous amenities: Living in a posh area’s gated community cooperative housing society means being able to access all in one place. From the gym to a library, pool to jogging track, power backup, support 24/7

Here is a list of top Residential communities for investment or residential purposes for you. In these societies, luxury meets comfort and convenience.

Check out the list below to discover the best places before investing in a residential apartment.

1. Elita Garden Vista: New Town, Kolkata

This property is one of the most luxurious and leading societies in the heart of Kolkata. Located in the eastern part of the city with 25 acres of total land. Structured with the finest architecture this residential apartment is a ready-to-move property. 16 towers consisting of 726 units, Elita Garden Vista offers a range of luxury living.

Location: Shapoorji Pallonji, Action Area III, Newtown, Kolkata.

Pricing: For 2 or 3 BHK flats and units the price range is set from 72 Lac to 1.02 Cr.

Amenities: Swimming pool, Clun House, Lift, Outdoor tennis court, Intercom, Gym, Food court, ATM, Meditation area, Jogging track Etc.

2. Urbana: EM Bypass, Kolkata

The skyscrapers of Urbana, built up in one of the posh areas in Kolkata, offers a range of benefits for its exclusive residents. The housing societies of this property assures to bring expansive scenic views and a serene environment making it the best living experience. Its 3 BHK and 4 BHK residential units with good ventilation, and fine dining make it a luxury property. With almost 78% of the open area, the spacing between apartments makes it a unique, beautiful, and comfortable place. Designed by Singapore-based architect Stephen Coates and built on 65 acres around 40-45 story towers.

Location: Anandapur high road, East Kolkata Township, EM Bypass, Kolkata.

Pricing: 3 BHK and 4 BHK residential apartments price range is set at 2.5 Cr to 9 Cr approx.

Amenities: With other community living common facilities it offers some unique amenities like a Skating rink, Rain water harvesting, Basketball court, Tennis court, and Amphitheater and etc.

3. Vyom: New Alipore, Kolkata

The property claims to offer the finest living in the heart of Kolkata. Built upon 7 acres of land encircled with greenery is home to over 1 lakh plants and natural ponds. Enjoy a noise-free and away from busy streets living also while being in the epicenter of one of the posh areas in Kolkata. Offering 17 exclusive garden homes with 1200 to 1400 sq. ft. size range and a luxury amenity center it is one of the largest landscape townships in the New Alipore area, Kolkata. A clubhouse with an international concierge consisting of three pools, state-of-the-art home theater, and more.

Location: Manmohan Banerjee Rd, New Alipore, Kolkata.

Pricing: Including GST and extra charges the 3 BHK flats are priced around rs. 2.02 Cr onwards and 3 BHK garden homes are 2.36 Cr onwards priced.

Amenities: Indoor amenities include a family jacuzzi, squash courts, cards room, billiards, and a business center. Outdoor amenities like an amphitheater, floating cabanas, multipurpose court, aqua gym, senior citizen walkway at the bamboo garden, and meditation deck. Also, mentionable, energy conservation, occupational health, and comfort, water conservation, solid waste management also other special services include high-speed elevators and VRV air conditioners and etc.

4. Atmosphere: Kolkata

The Atmosphere is a luxury condominium complex in the center of Kolkata built on 3 acres of land. Consisting of two residential towers with 80 units of single-story and two-story, t is the first sculpture in the sky of India. The unique sky bridge on the 34th floor suspended between two towers, makes the tower more attractive. The three-storeyed bridge includes a gym, meeting rooms, spa, sauna, sports facilities, virtual golf, and an infinity loop on the top floor. Not only luxury, here you can live in its own ecosystem of facilities and true wholesome benefits. The 4 BHK flats have 5925-6205 sq. ft. and the 5 BHK flats provide 6427-9238 sq. ft. super built-up area.

Location: Mirania Gardens, EM Bypass, Kolkata.

Pricing: It is quite confidential. Though on online portals the buyers can call for price on request.

Amenities: Mini theatre, Infinity pool, Swimming pool, Lounge, Laundry, Golf course, Sauna, Conference room, Terrace garden and etc.

5. Aurus, EM Bypass

This is a residential park for world citizens seeking luxury and convenience in one place with a calm and serene environment. The housing society offers a mesmerizing view of wetlands and mirania lake of Kolkata on both sides. The key attraction for the property is also its world-class clubhouse spread. The clubhouse is spread over 40,000 sq. ft. and a 40 mt. swimming with an exclusively customized health club, squash, and sky lounge at 374 ft. high, an international concierge, and other premium facility centers. The residences are 22ft. tall with 22ft long balconies to make you feel the excellence and elegance of living at once. The kitchen and service yard, semi-finished and air-conditioned 3 BHK premium apartments, and 4 BHK tall residences make it exclusive.

Location: Science City, Tangra, Kolkata, West Bengal

Pricing: Including GST and extra charges 3 BHK apartments are priced at Rs. 3.59 Cr onwards.

Amenities: Sky lounge at 374 ft., Board room, Children and toddlers playroom, Cards room, Waiting lounge, Jacuzzi & Steam rooms, Sun deck, Aqua gym, Cabanas, Outdoor Jacuzzi, Yoga lawn, Energy conservation, Occupational health and comfort, Water conservation and solid waste management and etc.

6. South City: South Kolkata

This property is at the center of the city and is considered to be in the most posh area. The eye-catching view and well-maintained apartment are meant for convenient and relaxed living. A big land area of 32 acres and a low-density population inside the housing society, allow the residents to enjoy all kinds of luxury and peace. The total no. of towers is 5 consisting of 1700 units its majorly available property types are 3 BHK and 4 BHK.

Location: Prince Anwar Shah Road, Kolkata.

Pricing: Average price per sq. ft. is 12,365 and the whole price range is 1.40 Cr to 3.00 Cr for 3 and 4 BHK apartments.

Amenities: Library, Intercom, Indoor games room, Badminton court and etc.

7. DLF New Town Heights: New Town

The attractive infrastructure and tranquil view of the lakeside make the property another best place to live. Quality construction and well-designed and planned apartments keep it the best place for families to live. Built on 15 acres of land with 9 towers consisting of 874 units offers numerous numbers of facilities and amenities for the residents. New age amenity centers and perfectly managed housing society keep urban living simpler and smoother.

Location: Rajarhat, New Town, Kolkata.

Pricing: Average price per sq. Ft. is rs. 5725 with a whole amount of 1.12 Cr onwards.

Amenities: Power backup, Lift, Club House, Security, Indoor games room, Reserved parking, Library, Jogging Track Etc.

Buying and investing in any kind of property depends totally on the buyer’s budget and what the Housing complexes offer. This list is for all those buyers who are finding for luxury and convenience at an affordable price. While also some listed properties here are only for luxury living-focused buyers. Kolkata offers all kinds of living experiences for every home buyer and lets them turn their dream home into a reality in no time.