Our apartment complex with 42 flats is situated at the corner of two busy roads. The Corporation is acquiring a portion of our land for road widening and as a result, the compound wall, sump and motor room have to be reconstructed. The cost of construction is estimated to be ₹ 30 lakh and the Association has decided to collect the amount based on the UDS of individual flats. Is this approach correct according to law? Logically, common amenities are enjoyed by all flat owners irrespective of their UDS. In that case, shouldn’t the amount be divided equally?
A. Samshath
Chennai
The sharing of cost based on undivided share of land held by each owner is correct and can be followed.
I am purchasing a flat from a renowned builder who insists I pay TDS (1%) and GST (12%) with every payment. During the time of booking(token advance) in January 2017, GST was not introduced but the project was started in November 2017. The expected project completion time is March 2019. Do I still have to pay GST? Is it necessary or viable to pay TDS and GST before completion or handing over of the flat? Also is there any concession/exemption for a retired senior citizen during such a purchase?
Dr. Mazher Sultana
Chennai
Please consult your chartered accountant or GST consultant for a comprehensive opinion on your query.
