There is a building which has only 4 flats. They are interested in getting their bldg managed through us. They have agreed to pay Rs. 2,000/- per month per flat to us as charges for managing their building. In addition to this, they have even agreed to pay Rs .5,000/- per month per flat (by cheque) to us as deposit to meet their building expenses, such as Elec. Exp. Sweepers sal., etc
We are not manpower company or firm & are actually concerned with our Rs. 2,000/- only. We are not taking the whole amt i.e 2+5, so that we do not fall in service tax net as the collection would be high and actual income is lower.
We have told them to nominate one person of their bldg, to approve the exp. or for amounts to be spent from this deposit to be collected & his approval (as sign on exp. voucher) shall be binding on all flat owners.
Can we issue separate Receipts to the flat owners stating that Rs. 5,000/- has been received as deposit towards payment of their building exp.? (we will keep this money in separate bank a/c also we plan to periodically present all accounts to the nominated person)
Will there be any issue?
Would it be advisable to take their sign on a simple unregistered contract agreement (not on any stamp paper – as cost would increase & would have to be borne by us) stating that they are paying this amount of Rs. 5000 as deposit for meeting their bldg exp. and if there is a shortfall they will make good this amount and if there is a excess the same shall be returned to them or adjusted in the next month?
Please I request the expert to advice on the same!
