What is non occupancy charges in Mumbai?

Non-Occupancy Charges are charges levied upon a member who does not reside in the society premises and the flat is vacant or let out or given on a license basis.

How are non occupancy charges calculated?

As mentioned above, non-occupancy charges levied by society should not be more than 10 per cent of the service charges. For example, if the service charges portion in the monthly maintenance calculation are Rs 2,710 per month, non-occupancy charges would be Rs 271 (10% of Rs 2,710) per month.

What is non occupancy charges Maharashtra?

Under a circular issued by the government of Maharashtra, under Section 79A of the Maharashtra Cooperative Societies Act, 1960, the amount of non occupancy charges cannot exceed 10% of the service charges of the society (excluding municipal taxes).

Why are non occupancy charges levied?

The non- occupancy charges are levied by the housing societies if the owner of the flat is not living in the flat and the property is either vacant or rented out.

What is non-occupancy tenant?

A non-occupancy tenant, other than a sub-tenant to whom the provisions of section 32 apply, shall be liable to ejectment on the ground that he holds only as a tenant from year to year, or under a lease which has expired or will expire by the end of the current agricultural year.

Are non-occupancy charges taxable?

Transfer Charges, Non-Occupancy Charges etc collected by Co-operative Societies from Its Members are Exempt from Income Tax: Supreme Court [Read Judgment]

What is occupancy charge?

Occupancy Charge means funds collected from a Tenant(s) for a particular Rental Unit with no attached mortgage, that are segregated from all other Band funds and used to cover services, maintenance, upkeep and to fund an ongoing replacement reserve for that particular rental unit.

What is the difference between occupancy tenant and a non occupancy tenant?

The term “Non-leased Premises” shall mean the Entire Premises less the Leased Premises. Occupancy means the use or intended use of a building or part thereof for the shelter or support of persons, animals or property.

What is non occupancy tenant?

Is GST applicable on non occupancy charges?

Sinking fund, repairs & mainte- nance fund, car parking charges, Non- occupancy charges or simple interest for late payment, attract GST, as these charges are collected by the RWA/Co-operative Society for supply of services meant for its members.

Who is a tenant by occupancy?

According to the Section 1 (dd) of the Land Act, a “tenant by occupancy” is defined to mean a lawful or bonafide occupant declared to be a tenant by occupancy by Section 31.

What happens if society member is not paying maintenance?

If a flat-owner fails to pay his maintenance on time, the society can initiate legal proceedings to recover the bill amounts. If a flat-owner fails to pay his maintenance for three months, he will be labelled a ‘defaulter’ under the Maharashtra Cooperative Housing Societies Act, 1960.

What is Supreme Court Judgement on maintenance charges?

The Supreme Court observed that according to the rules and bye-laws of Mumbai’s Cooperative Housing Societies, which are incorporated under the Maharashtra Cooperative Societies Act, all owners of residential properties/flats, as members of the Housing Society, are liable to pay such amount as may be determined by the …

What are occupancy rights?

occupancy right means any right to occupy the premises of an Outlet including as lessee, sublessee, licensee or as the holder of some other interest in the premises conferring an enforceable right to use or occupy them.