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Details of a corpus fund

October 23, 2020 01:44 pm | Updated 01:44 pm IST

Your property-related legal queries answered by S.C. RAGHURAM, Partner, RANK Associates, a Chennai-based law firm

Concept for property ladder, mortgage and real estate investment. Woman's hand putting house model on top of coins stack.

Is it mandatory for the owner of a resale to pay towards a corpus fund? I have bought a four-year-old apartment and my owner has already paid the corpus fund to the builder. Now, the apartment association is requesting me to pay a sum towards the corpus fund as I am a new member. Is it mandatory to pay this every time a member changes? Is there any time limit, etc.?

Rajesh Kanna

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Coimbatore

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Normally, the corpus fund relates to the apartment and not the owner. On resale, the deposit should be deemed as transferred to the new purchaser and there will be no need for any further payment. Please look into the bye-laws for any specific provision relating to this aspect.

I request you to kindly clarify the details regarding the 1% TDS to be deducted from the payment to be made to the builder when purchasing a flat. What are the heads to be included in calculating the 1% TDS? The builder has broadly classified the total cost under these heads: cost of UDS, construction cost, car park charges, GST, registration of both agreements, corpus fund, sales tax, CMDA charges, EB charges, deposit, etc. How is a 1% TDS calculated on the total cost of the flat (including all costs)? Please advise on whether any of the heads have been included in calculating the 1% TDS in the budget 2019-20. Have there been any changes or modifications in the 2020-21 budget? What is the GST rate payable by the builder on the sale of a flat?

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Hariharan M.S.

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Chennai

This has to be answered by a chartered accountant or tax consultant.

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