My Society in Mumbai are charging me 10% non occupancy charges. The Govt directive allows the Society to charge 10% of service charges nett of municipal taxes. The Society is collecting Sinking Fund and Repairs & Maintenance charges every month. In my opinion these two amounts are long term funds and hence should not form part of the non occupancy charges. Since the Act specifically mentions service charges I feel Sinking Fund and Repairs and Maintenance charges fall outside the definition of "service charge". Moreover the act also specifies the rate at which Sinking Fund and Repairs & Maintenance Fund should be collected. The Society has to seek the permission of the Registrar if they have to utilise these funds. Therefore in my opinion these levies are at par with Municipal taxes and hence should not be taken for calculation of Non-Occupancy charges. Members views are welcome.
