57 Avenue Wakad Pune Commercial Project
Wakad,Pune
Are you paying Rs 5,000 or above every month as your society maintenance charge? If yes, your housing society will have to rework their maintenance bill heads to ensure you or your society do not have to pay Goods and Services Tax (GST).
The latest taxation structure has put out tax of 18% on co-operative housing societies that either collect Rs 5,000 per month from a society member or the annual maintenance collection of a society is above Rs 20 lakh.
"Housing societies are not for making profit. I disagree with the idea and rule of levying taxes on co-operative housing societies. It is a retrograde measure," said Chandrashekhar Prabhu, a housing activist.
According to him, with such a levy, the entire concept and logic of a co-operative organisation is lost.
In order to beat the decision, housing societies have started pondering over legalities to avoid GST net.
Advocate Vinod Sampat, co-operative housing societies consultant, told, "The rules are clear, the 18% levy is not applicable on municipal tax, property tax, water bill, non-agricultural land tax, etc. Even sinking fund is excluded as it is a fund for future. However, repair fund attracts 18% levy."
As a result, co-operative housing societies will now have to re-work their maintenance bill heads to bifurcate taxes from the overall maintenance account head. "Multiple heads will have to be created to show taxes that is being paid by the society. The balance maintenance amount and repair fund is what has to be calculated for GST," said Sampat.
Prabhu said there are several hundreds of big housing societies where maintenance amount isn't Rs 5,000, but have large membership base, which will also come under GST. "This move by the government should be protested," he said.
"Such large societies can split their buildings into separate societies, which will help in not touching the threshold limit of Rs 20 lakh. It's a one time move for a permanent solution," Sampat said.
But this division of a society into multiple ones is a cumbersome and time consuming process, Prabhu said.
A few years ago, the Maharashtra government had levied 12.36% service tax on societies; later an exemption was given from such payment by Customs, Excise and Service Tax Appellate Tribunal.
Majestique Prime West Mahalunge Balewadi Pune 2BHK 3BHK
Mahalunge, Pune
Legacy The Statement Pimple Saudagar Pune 3 BHK 4 BHK Price Location Floor Plan Review
Pimple Saudagar, Pune
Aros at Life Republic by Kolte Patil Marunji HInjewadi Pune
Hinjewadi, Pune
Austin One Pimple Saudagar Pune 3 and 4 BHK Price Location Floor Plan Review
Pimple Saudagar, Pune
ABIL Castel Royale Bhosale Nagar Pune 4 BHK 5 BHK 6 BHK
Bhosale Nagar, Pune
VB Forest Castle S B Road Pune 4BHK 5BHK Price Location Floor Plan Review
Senapati Bapat Road, Pune
57 Avenue Wakad Pune Commercial Project
Wakad,Pune
Trump World Centre Mundhwa Pune Commercial Project
Mundhwa,Pune
Cornerstone Maruti Millennium Tower Baner Pune Commercial Project
Baner,Pune
M RAMANUJAN BY MALPANI BANER PUNE COMMERCIAL PROJECT
Baner,Pune
Laxmi Avenue Commercial Wakad Pune
Wakad,Pune
Achalare Business Capital Baner Pune Commercial Project
Baner,Pune
Greystone by Tremont Baner Pune Commercial Office Spaces
Baner,Pune
Ceratec 108 Tower Balewadi Pune Commercial Project
Balewadi,Pune
Mont Vert Montclaire Baner Pune Commercial Projects Office Spaces Available For Sale and Lease
Baner,Pune
WYNG By Kundan Spaces Camp Pune Commercial Office Space Price Location Floor Plan Review
Pune,Pune