Comments for ApartmentAdda Blog http://apartmentadda.com/blog ApartmentAdda: Web-based software for Management, Accounting and Communication in Apartment Complexes Tue, 16 Mar 2010 09:29:13 +0530 http://wordpress.org/?v=2.8.4 hourly 1 Comment on Income Tax for Apartment Owners Associations by Neeta Agarwal,CA http://apartmentadda.com/blog/2009/09/25/income-tax-for-apartment-owners-associations/comment-page-1/#comment-2687 Neeta Agarwal,CA Tue, 16 Mar 2010 09:29:13 +0000 http://apartmentadda.com/blog/?p=177#comment-2687 Hi Biju, An Apartment Association is a mutual association.Mutual dealings arise out of a mutual association.To constitute a mutual association,a number of persons associate together to subscribe money for a fund for the purpose of it being spent on their own welfare.No person can trade with himself or provide service to himself in tax parlance.Hence,there is no question of service tax liability for apartment associations on the maintenance fee collected/paid. Hi Biju,
An Apartment Association is a mutual association.Mutual dealings arise out of a mutual association.To constitute a mutual association,a number of persons associate together to subscribe money for a fund for the purpose of it being spent on their own welfare.No person can trade with himself or provide service to himself in tax parlance.Hence,there is no question of service tax liability for apartment associations on the maintenance fee collected/paid.

]]> Comment on Registration of Apartment Owners Association by M. Roy http://apartmentadda.com/blog/2009/11/02/registration-of-apartment-owners-association/comment-page-1/#comment-2678 M. Roy Tue, 16 Mar 2010 02:38:16 +0000 http://apartmentadda.com/blog/?p=225#comment-2678 There is a mess/canteen in the ground floor of our building. Is it legal to have a mess running in a residential building. Its filthy with rats and cockroaches running around. Please advice. There is a mess/canteen in the ground floor of our building. Is it legal to have a mess running in a residential building. Its filthy with rats and cockroaches running around. Please advice.

]]> Comment on Income Tax for Apartment Owners Associations by Biju AK http://apartmentadda.com/blog/2009/09/25/income-tax-for-apartment-owners-associations/comment-page-1/#comment-2645 Biju AK Mon, 15 Mar 2010 06:21:12 +0000 http://apartmentadda.com/blog/?p=177#comment-2645 Can i have some clue on Service Tax liability of apartment association Can i have some clue on Service Tax liability of apartment association

]]> Comment on A guide to Apartment Owners’ Associations in Bangalore by Jayant http://apartmentadda.com/blog/2009/03/10/a-guide-to-apartment-owners-associations-in-bangalore/comment-page-2/#comment-2546 Jayant Fri, 12 Mar 2010 15:02:21 +0000 http://apartmentadda.com/wordpress/?p=12#comment-2546 This is in reply to Anuj's comments that the Apartment Owners Association cannot cut water supply, but can only take legal action. In the Apartment I am staying in Anjanapura, Bangalore, not only did the Association cut the water supply, they also had some tough guys standing by to take care of any problems, some months back. The President, Secretary, and the Treasurer behave as if they own the whole place, and pass arbitrary laws. They do not hold regular meetings, and even when they do, they invite only a chosen few. The tenants are treated with scant regard. It is high time that such office bearers who misuse their position are shown their true place, which is to look after the welfare of the owners and residents, and not try to lord it over everyone. One wonders where one can have an effective redressal for these problems and ensure that these self appointed rulers are set right. This is in reply to Anuj’s comments that the Apartment Owners Association cannot cut water supply, but can only take legal action. In the Apartment I am staying in Anjanapura, Bangalore, not only did the Association cut the water supply, they also had some tough guys standing by to take care of any problems, some months back.

The President, Secretary, and the Treasurer behave as if they own the whole place, and pass arbitrary laws. They do not hold regular meetings, and even when they do, they invite only a chosen few.

The tenants are treated with scant regard. It is high time that such office bearers who misuse their position are shown their true place, which is to look after the welfare of the owners and residents, and not try to lord it over everyone. One wonders where one can have an effective redressal for these problems and ensure that these self appointed rulers are set right.

]]> Comment on A guide to Apartment Owners’ Associations in Bangalore by Narasimha http://apartmentadda.com/blog/2009/03/10/a-guide-to-apartment-owners-associations-in-bangalore/comment-page-2/#comment-2540 Narasimha Fri, 12 Mar 2010 09:48:27 +0000 http://apartmentadda.com/wordpress/?p=12#comment-2540 1)I bought an apartment recently having 14 apartments. 6 shared by land owner and 8 by builder who sold all 8. Welfare assocaition was registered starting with 7 owners purchased from builders. Land owner sold 2 and has 4 apartments and not cooperating, not joining association. What are the legal rights of association. three more owners are willing to join. 2) In a sharing agreement betwen land owner and builder, the common facilities like parking and terrace are writtten as shared in the ratio 48:52 same as apartment area sharing. Is it legal? common areas belong to all 14?? 3)though only 14 car parkings are availble and marked, land owner has forcibly occupied 8 as per area sharing as against 6 apartments. Builder did not hand over parking proberly marked. Big problem. what action?? 4)In the sharing agreemnet , builder has given no objection for commercial shop in the front without site plan approval. All residents not informed are against. Bigger problem. What action?? 5) all original documents of land etc with land owner and not handing over to assocoation. what action can be taken. 1)I bought an apartment recently having 14 apartments. 6 shared by land owner and 8 by builder who sold all 8. Welfare assocaition was registered starting with 7 owners purchased from builders. Land owner sold 2 and has 4 apartments and not cooperating, not joining association. What are the legal rights of association. three more owners are willing to join.
2) In a sharing agreement betwen land owner and builder, the common facilities like parking and terrace are writtten as shared in the ratio 48:52 same as apartment area sharing. Is it legal? common areas belong to all 14??
3)though only 14 car parkings are availble and marked, land owner has forcibly occupied 8 as per area sharing as against 6 apartments. Builder did not hand over parking proberly marked. Big problem. what action??
4)In the sharing agreemnet , builder has given no objection for commercial shop in the front without site plan approval. All residents not informed are against. Bigger problem. What action??
5) all original documents of land etc with land owner and not handing over to assocoation. what action can be taken.

]]> Comment on Khata Transfer – What and How by Meena http://apartmentadda.com/blog/2009/01/07/khata-transfer-what-and-how/comment-page-1/#comment-2503 Meena Thu, 11 Mar 2010 07:42:16 +0000 http://apartmentadda.com/wordpress/?p=6#comment-2503 We have decided to buy a apt for resale from a person who bought it from the builder. Subsequently, the builder and the land owner had a legal battle. This apt was not occupied by the current owner and now, he tells us that he is trying to get the khata for the apt but it is getting delayed (more than a couple of months now since the price was discussed and decided. No money was paid or any agreement made on paper) due to the fight going on. Do you think this could be a valid reason or is the seller delaying the deal close? We have decided to buy a apt for resale from a person who bought it from the builder. Subsequently, the builder and the land owner had a legal battle. This apt was not occupied by the current owner and now, he tells us that he is trying to get the khata for the apt but it is getting delayed (more than a couple of months now since the price was discussed and decided. No money was paid or any agreement made on paper) due to the fight going on. Do you think this could be a valid reason or is the seller delaying the deal close?

]]> Comment on Service Tax Refund for Apartment Owners by Jose http://apartmentadda.com/blog/2010/01/15/service-tax-refund-for-apartment-owners/comment-page-1/#comment-2299 Jose Sat, 06 Mar 2010 06:41:46 +0000 http://apartmentadda.com/blog/?p=503#comment-2299 Hi Ravi, My main point is that in view of the definition of RESIDENTIAL COMPLEX in the charging section 65(91a) read with the definition of CONSTRUCTION OF COMPLEX in section 65(30a) which specifically excludes from tax A COMPLEX WHICH IS CONSTRUCTED BY A PERSON DIRECTLY ENGAGING ANY OTHER PERSON FOR DESIGNING OR PLANNINGOF THE LAYOUT,AND THE CONSTRUCTION OF THE COMPLEX IS INTENDED FOR PERSONAL USE OF SUCH PERSON, irrespective of the liability of the Builder or his sub contractor,the flat owner is totally insulated from the liability to service tax. This is only confirmed by the circulars and notification which are not contrary to the provisions of the Act or law but only sets at rest any doubt or ambuguity in the minds of the Department and the public at large.As the circular says such transactions are outside the perview and ambit of service tax under the Construction of Complex service. If it is assessed under Works Contract Service which came into the tax net w e f 1/6/2007 the provisions may be different. I am talking only of agreements prior to 1/6/2007 and in respect of which there was only one head under which it could be taxed ie. Construction of Complex service. The question of evasion or non evasion of stamp duty nor tax planning is the subje ct matter of the reference....but simply whether the flat owner is liable to pay service tax. I would appreciate your views on this. Regards. Jose. Hi Ravi,

My main point is that in view of the definition of RESIDENTIAL COMPLEX in the charging section 65(91a) read with the definition of CONSTRUCTION OF COMPLEX in section 65(30a) which specifically excludes from tax A COMPLEX WHICH IS CONSTRUCTED BY A PERSON DIRECTLY ENGAGING ANY OTHER PERSON FOR DESIGNING OR PLANNINGOF THE LAYOUT,AND THE CONSTRUCTION OF THE COMPLEX IS INTENDED FOR PERSONAL USE OF SUCH PERSON, irrespective of the liability of the Builder or his sub contractor,the flat owner is totally insulated from the liability to service tax.

This is only confirmed by the circulars and notification which are not contrary to the provisions of the Act or law but only sets at rest any doubt or ambuguity in the minds of the Department and the public at large.As the circular says such transactions are outside the perview and ambit of service tax under the Construction of Complex service. If it is assessed under Works Contract Service which came into the tax net w e f 1/6/2007 the provisions may be different.

I am talking only of agreements prior to 1/6/2007 and in respect of which there was only one head under which it could be taxed ie. Construction of Complex service.

The question of evasion or non evasion of stamp duty nor tax planning is the subje ct matter of the reference….but simply whether the flat owner is liable to pay service tax.

I would appreciate your views on this.

Regards.

Jose.

]]> Comment on Service Tax Refund for Apartment Owners by Jose http://apartmentadda.com/blog/2010/01/15/service-tax-refund-for-apartment-owners/comment-page-1/#comment-2298 Jose Sat, 06 Mar 2010 06:41:40 +0000 http://apartmentadda.com/blog/?p=503#comment-2298 Hi Ravi, My main point is that in view of the definition of RESIDENTIAL COMPLEX in the charging section 65(91a) read with the definition of CONSTRUCTION OF COMPLEX in section 65(30a) which specifically excludes from tax A COMPLEX WHICH IS CONSTRUCTED BY A PERSON DIRECTLY ENGAGING ANY OTHER PERSON FOR DESIGNING OR PLANNINGOF THE LAYOUT,AND THE CONSTRUCTION OF THE COMPLEX IS INTENDED FOR PERSONAL USE OF SUCH PERSON, irrespective of the liability of the Builder or his sub contractor,the flat owner is totally insulated from the liability to service tax. This is only confirmed by the circulars and notification which are not contrary to the provisions of the Act or law but only sets at rest any doubt or ambuguity in the minds of the Department and the public at large.As the circular says such transactions are outside the perview and ambit of service tax under the Construction of Complex service. If it is assessed under Works Contract Service which came into the tax net w e f 1/6/2007 the provisions may be different. I am talking only of agreements prior to 1/6/2007 and in respect of which there was only one head under which it could be taxed ie. Construction of Complex service. The question of evasion or non evasion of stamp duty nor tax planning is the subje ct matter of the reference....but simply whether the flat owner is liable to pay service tax. I would appreciate your views on this. Regards. Jose. Hi Ravi,

My main point is that in view of the definition of RESIDENTIAL COMPLEX in the charging section 65(91a) read with the definition of CONSTRUCTION OF COMPLEX in section 65(30a) which specifically excludes from tax A COMPLEX WHICH IS CONSTRUCTED BY A PERSON DIRECTLY ENGAGING ANY OTHER PERSON FOR DESIGNING OR PLANNINGOF THE LAYOUT,AND THE CONSTRUCTION OF THE COMPLEX IS INTENDED FOR PERSONAL USE OF SUCH PERSON, irrespective of the liability of the Builder or his sub contractor,the flat owner is totally insulated from the liability to service tax.

This is only confirmed by the circulars and notification which are not contrary to the provisions of the Act or law but only sets at rest any doubt or ambuguity in the minds of the Department and the public at large.As the circular says such transactions are outside the perview and ambit of service tax under the Construction of Complex service. If it is assessed under Works Contract Service which came into the tax net w e f 1/6/2007 the provisions may be different.

I am talking only of agreements prior to 1/6/2007 and in respect of which there was only one head under which it could be taxed ie. Construction of Complex service.

The question of evasion or non evasion of stamp duty nor tax planning is the subje ct matter of the reference….but simply whether the flat owner is liable to pay service tax.

I would appreciate your views on this.

Regards.

Jose.

]]> Comment on A guide to Apartment Owners’ Associations in Bangalore by madhusudhan http://apartmentadda.com/blog/2009/03/10/a-guide-to-apartment-owners-associations-in-bangalore/comment-page-2/#comment-2293 madhusudhan Sat, 06 Mar 2010 03:46:00 +0000 http://apartmentadda.com/wordpress/?p=12#comment-2293 Dear sir In our apartment one of the owner is not paying corpus fund ,despite several reminders.how shall we go about this.what action can be taken? Dear sir
In our apartment one of the owner is not paying corpus fund ,despite several reminders.how shall we go about this.what action can be taken?

]]> Comment on Khata Transfer – What and How by Sheela http://apartmentadda.com/blog/2009/01/07/khata-transfer-what-and-how/comment-page-1/#comment-2218 Sheela Thu, 04 Mar 2010 15:08:41 +0000 http://apartmentadda.com/wordpress/?p=6#comment-2218 I got it done through a broker for a fee of Rs.10000(includes bribe) excluding the khata fee. The service was prompt. I got it done through a broker for a fee of Rs.10000(includes bribe) excluding the khata fee. The service was prompt.

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