Kiran Gandhi 21 May 2016

Non occupancy charges

Hi,

I have a flat in CHS Mumbai. which has been rented out to my business partner. society is charging Non Occupancy Charges @ 10% calculated on followings :

Municipal Taxes + Non Agriculture& Edu Tax + Water Charges + Electrical Charges +Festival Charges + General Maintenance Charges. The total of these comes to Rs.2312/- and Society is charging Rs.231/- as Non Ocupancy Charge. is this correct ?

According to my knowledge it should be on Electrical Charges +Festival Charges + General Maintenance Charges only

i.e. excluding Municipal Taxes + Non Agriculture& Edu Tax + Water Charges

which is the correct method of calculating Non Occupation Charge ?

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6 Replies

Kishor Mehta (CEO) 22 May 2016

Sir, Non-occupancy charges should be charged @10% of maintenance charges less Property tax & other relevant Municipal taxes & cesses. Good luck, Kishor Mehta

T. Kalaiselvan, Advocate (Advocate) 27 May 2016

Nothing more to add to Mr. Kishore Mehta's detailed opinion.

Kiran Gandhi 27 May 2016

Thank you very much. However, I request further clearification, whether society can collect Non Occupancy Carge on Cable Charge? Please reply. Regards Kiran Gandhi

T. Kalaiselvan, Advocate (Advocate) 28 May 2016

If cable charges are included in the maintenance charges then it is applicable however in my opinion it is not included hence you may not be liable to pay the same.

Kiran Gandhi 28 May 2016

Thank you very much. I am providing all the heads with amount, which will give you the clear picture and You will be able to guide me in batter faction. Details are as under: Muni Tax. 206/- Non agri & edu. Tax 4/- Water charges. 502/- Electrical charges. 370/- Festival charge. 20/- General Maintenance 1190/- Sinking fund. 40/- Parking charges. 120/- Cable charges. 550/- Non Occupation Charge 231/- Please guid me that which are the items of the above attracts Non Occupation charge? Please reply Thanking you Kiran Gandhi