Society Accounting Archive
21 Feb 2013
Tamper Proof Defaulters List
We all have seen Defaulters’ List – a A4 sheet with names and amounts stuck on the Notice Board. Unless you walk up to the noticeboard, you typically don’t know about the existence of this list. For the first time we saw a Defaulters’ List, that you simply can’t miss. A full fledged 6 Ft
22 Jan 2013
Service Tax for Housing Societies – Clarity
The Budget of July-2012 has given considerable clarity about Service Tax for Housing Societies. Right after the Budget we had presented the interpretations in this article. The article included inputs from Society Auditors, Service Tax consultants in the Big Fours, and almost every CA who is a Treasurer on our Network! While the article tickled
17 Jan 2013
Is Income Tax applicable for Society FDs?
A Residential Society* collects Funds from its Members and pays for Common Expenses from such Funds. The Society does not pay Income Tax for any Excess of this Income over Expenses. This is allowed due to the Principle of Mutuality. At the end of a Financial Year, any Excess Fund , typically termed as Reserve
12 Jan 2013
Enhanced Utility Billing and Piped Gas Slabs
Dear ADDA Treasurers, Wish you a very Happy New Year. We have a new release which will make you happy. The Utility Billing functionality has been upgraded with 2 important features. 1. Memorize Readings A long standing request of some treasurers where they had to maintain the Meter Readings offline in Excel and upload only
17 Dec 2012
Corpus Fund – Definition
In the context of Co-operative Housing Societies (CHS), The Corpus Fund is typically handed over by the Builder to the Society. However, the Society may contribute further and utilize the Corpus Fund by making Rules with the approval of the General Body. However, such fund cannot be taken from the person transferring flat/tenement/right to share/share
17 Dec 2012
Sinking Fund – Definition
In the context of Co-operative Housing Societies (CHS), A Sinking Fund consists of contribution from all Members, at the rate fixed at the General Body Meeting from time to time, subject to the minimum of of 0.25 percent per annum of the construction cost of each flat. Utilization: On the Resolution passed at the meeting
17 Dec 2012
Repairs & Maintenance Fund – Definition
In the context of Co-operative Housing Societies (CHS), A Repairs & Maintenance Fund consists of contribution from all Members, at the rate fixed at the General Body Meeting from time to time, subject to the minimum of of 0.75 percent per annum of the construction cost of each flat for meeting expenses of normal recurring
17 Dec 2012
Reserve Fund – Definition
In the context of Co-operative Housing Societies (CHS) A Reserve Fund comprises of - a) the amounts carried to this fund, from year to year, out of the net profit of that year b) all entrance fees received by the society from its members c) all transfer fees received by the society from its members
11 Nov 2012
CTS 2010 Standard Cheques
Dear ADDA Treasurers, RBI is mandating the use of new format Cheque leaves – known as CTS 2010 standard Cheques from 01-Jan-2013. UPDATE ON 19-DEC-2012: RBI has now extended the deadline to 31st March 2013 to withdraw non-CTS 2010 standard cheques in circulation. RBI has also advised that although any residual non-CTS 2010 standard cheques
12 Oct 2012
1 Crore Payment Gateway Transactions Crossed
Hello ADDA Users, We want to thank every one of you who have used our Online Payment Gateway Facility to pay your Society dues. Today, we cross Rs.1 Crore in transactions settled via our Payment Gateway. We have crossed this mark within 1 year of launching this facility for our Premium ADDAs. What this means
29 Sep 2012
Introducing Refundable Deposit Workflow
Hello ADDA Treasurers, The long awaited / requested feature is now available – The Refundable Deposit Workflow. Here is the sequence of this workflow. 1. Member while booking the Party Hall gives a Refundable Deposit say Rs.5,000. 2. After the Party is over, the Estate Manager discovers a broken light Fixture worth Rs.1,000. 3. When
06 Jul 2012
Payment Gateway rates GOING DOWN!
In the ApartmentADDA Payment Gateway (AAPG) setups, the Resident pays an extra Payment Gateway charge (of a maximum 2.5%, all inclusive), when they make their Association payment using the AAPG. We have an exciting news for Associations using the AAPG! There are going to be MAJOR rate reductions in the Payment Gateway Charges. While all
16 Jun 2012
Is your Housing Society Taxable?
Post Budget 2012, the eligibility of a Society for Service Tax collection and remittance can be calculated as below: Step1: Total all collections of last year, subtract collections that went towards payments to local authorities (e.g., payments to Municipality) = Rs.A Step 2: Find the number of Members in your Society (If one Owner has
14 Jun 2012
Service Tax for Housing Societies – impact of Budget 2012
There have been Drastic Changes in the Service Tax law as applicable to Apartment Owners Associations or Cooperative Housing Societies, as presented in Budget 2012. These changes are applicable from 01-July-2012. We compile below all the changes. A circular with clear details from the Service Tax Department is still awaited. Below have been compiled with
14 Jun 2012
Applying July-2012 Service Tax changes in your ADDA
If you are performing your Society Billing on ApartmentADDA, below are the suggested changes for the Service Tax reforms of Budget 2012. If your Society already collects Service Tax from Members Analyze the Billing for 01-July-2012. For each Flat Member, calculate the total of the Monthly or Quarterly Recurring Invoice. Subtract the amount paid to
14 Jun 2012
Service Tax registration for Housing Societies
The Procedure for Service Tax Registration for a Housing Society or Apartment Owners’ Association is as follows. 1. Application ST-1 needs to be filled. Can be downloaded here: http://www.servicetax.gov.in/forms/st1.pdf 2. The Application is to be signed by the authorized signatory of the Society/Association – typically the President or Secretary. 3. Following documents to accompany the
09 Apr 2012
Service Tax of 12.36% from 01-Apr-2012
Dear ADDA Treasurers, Some of you have written to us about when to start charging the Service Tax of 12.36%. The answer is: from 01-April-2012. While the Parliamentary approval on the Budget Proposal is pending, the budget document states the date from which various changes are applicable. The budget document is available here: http://indiabudget.nic.in/ub2012-13/mem/mem2.pdf Page
31 Mar 2012
Wishlist for Housing Society AGMs
It is April, and it is AGM time. While you get ready to ensure your ADDA’s Admin Reports are ready to be shared or printed, we have a wishlist that you could present in your AGM for approval. This wishlist has some simple resolutions, which if passed, will make the life of you – the
07 Mar 2012
Tenant involvement in Society Accounting
Can the Housing Society levy charges directly on the Tenant? The answer is No. The Housing Society can levy all charges only on the Member, who is the Owner of the Apartment. The Tenant does not come in direct contact of the Society w.r.t. Charges. The Owner is responsible for settlings all charges towards the
07 Mar 2012
NOC for Housing Society Accounting
Many Societies charge a Non Occupancy Charges for Apartments that are rented. These charges are made part of the Monthly or Quarterly Invoices or Demand Notes. Here are a few FAQs about Non Occupancy Charges (NOC). 1. Is NOC a function of the amount of Rent collected by the Owner? E.g., 20% of the Rent
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