Things To Know About Maintenance Charges

Things To Know About Maintenance Charges

Things To Know About Maintenance Charges
Developers are a key sector stakeholder and for the faster implementation of projects, authorities must have them on board. (Advocateji)

Buying an apartment comes with a slew of charges apart from stamp duty and registration fee. One of them is maintenance charge which is paid monthly or annually by the apartment owners to the society complex or resident welfare association for upkeep of the common area. But homebuyers often miss out the significant  facts about such expenses and end up paying miscellaneous amount, distressing themselves later.

Usually housing societies levy maintenance charges as per the area of the flat or on other variables if the apartments are of same size. Also, a buyer should know the facilities provided under the charge. The maintenance charge varies between Rs 2-25 per sq ft. There are instances when builders charge advance maintenance cost for one or two years at the time of possession. Also, according to GST rules, monthly maintenance charges of Rs 7,500 or less are exempted from GST whereas if the total collection is more than Rs 20 lakh yearly,  the societies need not register but if the annual turnover is more than this, 18 per cent GST will be applicable.

Homebuyers need to pay the charges at the time of possession depending in the amenities and location. Some builders may ask you to pay for two years or even three years. While it is necessary for the builder to form the RWA, it also depends on the time taken in formation of society. Also, do not pay the maintenance cost unless the flat is registered in your name.

Since maintenance charges are applicable from the time a flat is occupied, its basic motive is to fund operations related to upkeep, maintenance, and upgrade of areas which are not directly under any individual's ownership. RERA's provisions enjoin upon the developer to see that residents don’t pay ad hoc charges. Also, there should be a declaration from the developer in the documents that they are acting in own self-interest and that they are not receiving any remuneration or kick-back commission. 

Type of maintenance chargeApplicability
Expenses on repair and maintenance of the building0.75% per annum of the construction cost of each flat
Service charges (housekeeping, security, electricity for common areas, equipment)Equally divided among the flats
Expenses on repair and maintenance of elevatorsEqually divided among the flats
Sinking fundMinimum of 0.25% per annum of the construction cost of each flat
Non-occupancy chargesFor flats which are rented, calculated at 10% of service charges
Parking chargesBy number of parking slots of each member
Property tax and water chargesActual consumption of each flat, or number of water inlets

 

Last Updated: Wed Nov 28 2018

Similar articles

@@Mon Jan 14 2019 15:05:42