Maintenance billing is one of the most common areas of confusion in apartment communities. Questions around how Common Area Maintenance (CAM) charges should be calculated often lead to disagreements between residents, treasurers, and Management Committees. And these unresolved disputes, sometimes even land up in courts.
To help housing societies better understand practical approaches to set up CAM billing, which becomes fool proof and legal defensible, ADDA recently conducted an awareness workshop for RWAs and Management Committee members.
The session was conducted by San Banerjee, CEO & Co-Founder of ADDA, along with Satish Mallya and CA Ramesh Padmanaban, Governing Council Member and Legal Lead at the Bangalore Apartment Federation (BAF), joining as panelists.
The workshop had originally been planned to have limited slots of 100, but due to the strong response and large number of registrations, the capacity had to be extended to 150 participants. Attendees included treasurers, MC members, and residents from apartment communities across India who deal with society finances.
This blog captures the key themes discussed during the session and the common questions that apartment communities face when preparing maintenance invoices.
Table of Contents
Why CAM Billing Is a Frequent Source of Disputes
If you live in an apartment community, you have probably heard this debate at some point: Should maintenance charges be equal for all flats, or calculated based on the size of the apartment?
Different communities follow different methods. Some charge equal maintenance across all units, while others calculate charges based on the apartment’s square foot, while others goes ahead and uses hybrid of both methods.
Over the years, different interpretations and court rulings in various cities have added to the confusion. As a result, many Management Committees find it difficult to clearly explain why a particular billing method is being followed.
The workshop aimed to bring clarity to this issue by helping participants understand what the law says and how associations can approach billing decisions responsibly.
Understanding Apartment Laws and Why Maintenance Bills Are Often Misunderstood
One of the key points discussed in the workshop was the importance of understanding the law under which a housing society is registered.
In Maharashtra Co-operative Housing Societies, there are clearer guidelines and model bylaws that define how CAM expenses and maintenance invoicing should be structured. Because of this, most associations in the state have a clearer framework when preparing their maintenance bills.
However, in many other states, the situation is different. Apartment communities often operate under Apartment Ownership Acts, such as those in:
- Karnataka
- Tamil Nadu
- Kerala
- Telangana
- Andhra Pradesh
- West Bengal
While these laws define ownership structures and responsibilities within apartment communities, they do not always provide the same level of detailed guidance on how maintenance invoices should be structured in practice.
This is one of the reasons why maintenance billing is often misunderstood in many apartment communities. In some societies, the maintenance bill appears as a single service charge line item, while in others it is split into multiple components that together make up the total CAM amount.
Because of these differences, residents across communities may have very different expectations about how maintenance charges should be calculated and presented.
The workshop highlighted that for Management Committees and treasurers, it is important to first understand the legal framework of their association and the clauses related to common expenses before deciding how maintenance invoices should be structured.
Handling Disagreements Among Residents
Disputes around CAM billing usually arise when residents feel the calculation method is not fair.
For example:
- Owners of larger apartments may question higher charges when maintenance is calculated per square foot.
- Owners of smaller apartments may object if maintenance is charged equally across all units.
The workshop explained what management committees must do when such disagreements arise.
Active Participation and Real Questions from Communities
The workshop included a presentation followed by an extended Q&A session, where participants raised practical questions based on real experiences in their communities.
Some of the topics discussed included:
- Interpreting apartment laws in different states
- Structuring maintenance invoices
- Managing disagreements among residents
- Making billing changes through AGM processes
The discussion showed that CAM billing decisions are not just accounting decisions, but community governance decisions.
Why Workshops Like This Matter
Apartment communities today manage many responsibilities starting from finances and compliance to communication and dispute resolution.
Workshops like this help Management Committees, RWAs and treasurers understand both the legal context and the practical realities of running a community.
With better awareness and the right tools, RWAs can make maintenance billing more transparent, structured, and easier for residents to understand.
Explore How ADDA Simplifies Apartment Accounting
If your association wants to simplify maintenance billing and generate structured CAM invoices for your community:
Explore ADDA’s Apartment Accounting and Billing Software
https://adda.io
Questions from RWAs and MC Members During the CAM Invoice Workshop
During the session, participants asked several practical questions based on real situations they face while managing finances in their apartment communities.
The experts addressed questions ranging from maintenance calculation methods and legal frameworks to GST implications, hybrid billing models, and dispute resolution within societies.
Q1: Which is the correct act for apartment registration?
Answer: Each state has its own Apartment Ownership Act. Refer to the state-wise breakdown — Tamil Nadu AOA 2022, Karnataka AOA 1972, Kerala AOA 1983, Telangana Apartments Act, Andhra Pradesh, and West Bengal all follow the same undivided interest clause.
Q2: What is the difference between the Apartment Owners Act and the Society Act?
Answer: The Society Act is a broad law used by different types of organizations — charitable groups, clubs, alumni associations, even dairy cooperatives. It does not specifically address apartment ownership or property-related cost sharing. The Apartment Ownership Act, on the other hand, is designed specifically for apartment communities and defines ownership rights, undivided share of property, and the framework for common expenses.
Q3: Our villa community is registered under the Karnataka Society Act 1960. Is that correct and how should maintenance be calculated?
Answer: The Society Act is a generic law and does not clearly define how common expenses should be shared among property owners. Communities registered under this act usually follow their own bylaws for maintenance calculations. However, registering under the Apartment Ownership Act provides a clearer legal framework based on ownership share. In Karnataka, communities are also advised to explore the upcoming KAOMA (Karnataka Apartment Owners and Management Act).
Q4: Our society charges fixed maintenance because we are registered under the Society Act. Is this acceptable?
Answer: Yes, if the society’s bylaws allow it. However, Apartment Ownership Acts typically provide clearer guidance on ownership share and maintenance calculations. Migration to AOA is strongly advisable, especially in Karnataka where the Society Act may not even legally authorize the association to collect maintenance charges for common areas.
Q5: Tamil Nadu AOA 2022 says maintenance is per sq. ft. Can the association change it to a fixed rate even with 80% vote? The act overrides bylaws.
Answer: If the act explicitly states it overrides bylaws, a legal opinion is advisable. However, courts often give weight to a society’s own bylaws when the decision was made transparently with proper process and voting. This remains a split opinion — different courts have ruled differently on act vs. bylaw precedence. Tamil Nadu AOA 2022 is a modern act and may be more strictly interpreted.
Q6: Can an AGM resolution override the law regarding maintenance calculation?
Answer: No. Legal provisions in the applicable act take precedence over General Body decisions. Associations cannot override legal ownership structures through voting alone. However, courts do give significant weight to detailed, process-compliant bylaws where the act lacks granular guidance.
Q7: Can overall bylaws override the act under which the society is registered?
Answer: Courts take varying approaches. Given that most acts (e.g., Karnataka AOA 1972) are 30–40 years old and contain minimal detail (just one clause on undivided interest), courts tend to give more weight to detailed bylaws. The more detailed and process-compliant your bylaws, the stronger your legal position. In cases of direct inconsistency, the act prevails.
Q8: Under the Karnataka Apartment Ownership Act, should maintenance be charged equally or based on square footage?
Answer: Under the Karnataka AOA, common expenses are linked to ownership share, which corresponds to the apartment’s undivided interest — i.e., per sq. ft. basis. This is the same clause used across Tamil Nadu, Kerala, Telangana, Andhra Pradesh, and West Bengal.
Q9: If majority are smaller units, they’ll always vote for equal basis. What can be done?
Answer: Not much can be done if voting is one unit = one vote. A hybrid model can help reduce the extreme gap between what smaller and larger units pay, rather than going fully equal or fully per sq. ft. Outside Maharashtra, a new act (KAOMA in Karnataka) may eventually introduce a legal basis for hybrid billing.
Q10: If one apartment has one resident and another has five residents, how can equal maintenance be considered fair?
Answer: Maintenance expenses fall into two broad categories. Usage-related expenses — security, housekeeping, common lighting — benefit all residents equally regardless of occupancy. Ownership-related expenses — insurance, long-term infrastructure — are tied to the property itself. Most hybrid models distribute these differently based on this logic.
Q11: Can maintenance charges be calculated on a per-person basis?
Answer: While theoretically possible if approved by the General Body, this is rarely used in practice because the number of occupants changes frequently and is difficult to track accurately.
Q12: If the sale deed mentions sq. ft. basis, can the association move to a hybrid model?
Answer: Most sale deeds state that maintenance will be determined by the association. Therefore, associations can adopt or revise billing models with proper General Body approval, following the process in the bylaws.
Q13: Can societies design their own hybrid maintenance model?
Answer: Yes. Many communities adopt hybrid models where some expenses are shared equally and others are calculated based on apartment size. The model must be transparent, fair, and approved by the General Body. Maharashtra’s Model Bylaws provide the most detailed, government-vetted reference for this.
Q14: For a CHS in Maharashtra, what approach should be followed for service charges?
Answer: Follow the Maharashtra Model Bylaws — the formula is detailed there. The only unknown is the total construction cost of your complex (which developers often don’t share). Survey your locality or consult a specialist to arrive at a reasonable figure.
Q15: When you say sq. ft. basis — is it per apartment area or undivided share?
Answer: Undivided share is ultimately based on apartment area. The two are the same in practice — undivided share is calculated from the apartment’s carpet area.
Q16: What expenses typically fall under the Repair and Maintenance Fund?
Answer: These include major repairs to common infrastructure, replacement of mechanical parts in equipment, and AMCs for lifts, generators, and other systems. Strictly speaking, all repairs outside regular AMC coverage can be drawn from this fund — both minor and major. Associations usually define this clearly in their bylaws.
Q17: What are examples of day-to-day operating expenses in apartment communities?
Answer: Typical operational expenses include security services, housekeeping staff, common electricity, generator fuel, water supply management, STP running costs, lift AMC, printing and stationery, software subscriptions, audit fees, and meeting expenses. These are generally shared equally across all units under the hybrid model.
Q18: How should insurance premiums be treated in maintenance billing?
Answer: Insurance protects the value of the property and is an ownership-related expense. It is calculated based on apartment size or ownership share — i.e., per sq. ft. basis — not on equal basis.
Q19: What is the difference between Corpus Fund, Sinking Fund, Buffer Fund, and Repair Fund?
Answer: There is no universal definition across all states. Each association defines the purpose and collection method of these funds in its bylaws. Generally — Repair Fund covers mid-term repairs; Sinking Fund is for long-term asset replacement (e.g., lift replacement, major infrastructure); Corpus or Buffer Funds are reserves for future contingencies. All of these are ownership-linked and should be collected on a per sq. ft. basis.
Q20: How should corpus funds be collected from new owners?
Answer: Since corpus funds are created for specific purposes, the method of collection is typically decided by the General Body. If the fund’s purpose is mid-term or long-term (which it usually is), it should be collected on a per sq. ft. basis as it adds to property value and is tied to ownership.
Q21: How do societies determine the amount to collect for repair and sinking funds?
Answer: Maharashtra Model Bylaws provide a useful benchmark: Repair & Maintenance Fund at min. 0.75% p.a. of total construction cost; Sinking Fund at min. 0.25% p.a. of total construction cost. For other states, base your calculation on a technical and financial assessment of your property’s age, assets, and future replacement needs. The amount can and should be revised periodically as the property ages.
Q22: Should Repair & Maintenance / Sinking Fund be based on current construction cost or historical cost?
Answer: Flexible. Current cost = more aggressive fund-building (higher collections). Historical cost = more conservative collections. Decide based on how aggressively you want to build reserves and the age of your property.
Q23: Water charges on equal basis is misleading — should be based on usage. We have meters.
Answer: Absolutely right. Water meters are the most accurate and undisputed method. Even charging by water inlets (as some societies do) is better than flat equal charges, but still not fully accurate for locked or low-usage units. Metered consumption is the gold standard and is undisputed.
Q24: If water supply is metered, can societies charge residents based on consumption?
Answer: Yes. Charging based on actual metered usage is the most accurate and transparent method. If you have meters, consumption-based billing covers water charges and STP costs together.
Q25: Water charges — Maharashtra Model Bylaw 67 mentions charges by number/size of inlets but also mentions equal distribution. Please clarify.
Answer: Both approaches exist across societies. Some charge equally, some by water inlets, and some separate common area water (gardening, landscaping) from unit-level water charges. The community chooses what works best for its setup.
Q26: How should generator diesel costs be allocated among apartments?
Answer: Communities may choose different approaches: equal sharing across units, allocation based on electrical load, or meter-based billing where infrastructure allows. The General Body decides the method, which should be incorporated into the bylaws.
Q27: How should AMC be charged in a hybrid model?
Answer: AMC for housekeeping, security, lift, STP, generators, etc. = day-to-day expense → falls under service charges → equal basis. AMCs don’t usually cover major repairs; those come from the Repair & Maintenance Fund.
Q28: Should R&M charges include only major expenses or also minor repairs?
Answer: All repairs outside AMC coverage can be drawn from the R&M Fund — both minor and major. However, societies may structure this differently based on administrative convenience and internal policies, as long as it’s defined in the bylaws.
Q29: What items are typically included in maintenance invoices in Maharashtra societies?
Answer: Maharashtra invoices often include multiple components: service charges (equal), water charges (equal), common electricity (equal), insurance (per sq. ft.), repair fund (per sq. ft.), sinking fund (per sq. ft.), and sometimes education & training fund and social welfare fund. This structure provides a transparent breakdown of expenses.
Q30: Is it mandatory to show detailed line items in maintenance invoices?
Answer: Not always mandatory, but itemized invoices are strongly preferred as they provide greater transparency to residents and are easier to defend in case of disputes.
Q31: In plotted or villa communities, should repair and sinking funds apply to individual villas?
Answer: These funds generally apply only to common infrastructure and shared amenities, not to privately owned villas or plots. For villa communities, common area expenses are relatively lower (no lifts, complex water supply, etc.) and must be aligned with the undivided share as per sale deeds.
Q32: We are a villa community — 40% of villas have backyards (200–500 sq. ft.). Backyard owners are a minority. How to approach CAM?
Answer: Look at the undivided share as recorded in your sale deed. The key question is whether the backyard area is included in carpet area calculations for the purpose of undivided share. This is highly specific and needs individual examination.
Q33: Mixed community — 30% apartments, 70% villas (by built-up area). How to handle CAM?
Answer: Very complex. Villas and apartments have fundamentally different infrastructure. You may need two entirely separate formulas — one for villas, one for apartments. Most disputes in India arise in mixed communities. Handle on a case-by-case basis.
Q34: If ownership is equal (all villas are same sq. ft.), what to do?
Answer: Equal basis for everything. If all units have the same area, there is no distinction between equal and per sq. ft. calculations — nothing to worry about.
Q35: Should exclusive terrace areas be included in CAM charges?
Answer: A reduced or differential charge can be applied for large terrace areas. First check whether the terrace is included in the calculation of undivided interest (UDI) in the sale deed before deciding.
Q36: How should corpus fund be collected?
Answer: Depends on its purpose. If it’s a developer-handover fund or a long-term reserve (sinking/infrastructure fund), it should be collected on a per sq. ft. basis. Clearly define in bylaws: purpose, eligible expenses, and collection method.
Q37: How should corpus funds be collected from new owners?
Answer: The method is typically decided by the General Body at the time of fund creation. Since corpus is usually a long-term or infrastructure fund, it should be collected on a per sq. ft. basis as it represents an asset tied to property ownership.
Q38: How should Corpus Fund be calculated — equal or per sq. ft.?
Answer: Depends on the purpose of the fund. Typically, the calculation method is decided at the time of fund creation and approved by the General Body. Long-term and infrastructure-linked funds = per sq. ft.
Q39: Can Non-Occupancy Charges be levied if the owner’s brother is staying in the flat?
Answer: Typically, Non-Occupancy Charges apply when the unit is rented out to tenants, not when immediate family members are staying without rent. Most bylaws do not classify this as non-occupancy. Verify your society’s specific bylaws before applying charges.
Q40: Explain non-occupancy charges — to whom and how?
Answer: Charged only for tenant-occupied flats (not locked units, not family-occupied units). Maximum 10% of service charges only. Logic: two families (owner + tenant) can legally use facilities; more move-ins/move-outs = more wear and tear; more administrative load (parking tags, security). Widely disputed in southern states where AOA doesn’t explicitly provide for it; well-established in Maharashtra.
Q41: If a flat is rented out, can the association charge non-occupancy charges?
Answer: Yes. Non-occupancy charges apply when the owner does not live in the apartment and rents it to tenants. The maximum is 10% of service charges as per Maharashtra Model Bylaws — the most widely referenced precedent.
Q42: Regarding non-occupancy charges — owner’s brother is staying. Can we charge NOC charges?
Answer: Difficult to establish. If the owner has informed the community that it is a tenanted unit and there is a rental agreement in place, then yes. Otherwise, hard to charge — the owner’s family staying without rent does not qualify.
Q43: Can association services (security, waste management, generator, etc.) be stopped if a resident defaults on payment?
Answer: Essential services such as water supply, electricity, security, and waste management should not be stopped. However, access to non-essential amenities like the clubhouse, gym, or pool can be restricted as per bylaws.
Q44: How can societies recover unpaid maintenance dues?
Answer: Associations typically recover pending dues when the property is sold or rented, since a No Dues Certificate may be required to complete the transaction. A legal demand through proper invoice records is the first step — ADDA’s invoicing system creates a continuous legal demand trail.
Q45: We currently have fixed maintenance charges. How can we move to a per sq. ft. model?
Answer: A per sq. ft. model is generally more equitable as it aligns charges with unit size. A commonly acceptable benchmark is around ₹2–₹3 per sq. ft., depending on total expenses. The transition must be approved by the General Body and clearly communicated to all members.
Q46: In an AGM, if smaller unit owners form the majority and object to the hybrid model, what happens?
Answer: You have to go by majority vote. Outside Maharashtra, there’s no binding framework for hybrid billing. Karnataka is working on KAOMA, which may introduce a legal basis for hybrid — but as of now, if the majority votes for per sq. ft. (which benefits smaller units), there’s little recourse.
Q47: Can societies change their maintenance billing structure later?
Answer: Yes. Changes to billing structures can be introduced through proper governance processes — typically approval in a General Body Meeting, followed by updating the bylaws.
Q48: What should associations do when residents disagree about maintenance calculations?
Answer: Discuss the issue transparently in a General Body Meeting. Conduct an AGM or SGM with minimum 14 days’ notice, exact agenda clearly stated, and voting following the process in the bylaws. Courts scrutinize the process of decision-making as much as the decision itself. If needed, a hybrid model can reduce the gap between competing viewpoints.
Q49: What can societies do if very few residents volunteer for the Management Committee?
Answer: Some communities introduce honorariums or sitting fees to recognize the time involved. Others offer waivers on specific fund contributions for elected MC members. As long as these benefits are decided transparently in a GBM, voted on, and listed in the bylaws, they are acceptable.
Q50: Is the bylaw separate for a society and a federation?
Answer: Yes. Every registered legal entity has its own bylaws. A federation is a separately registered association with a distinct purpose (managing common gate, roads, shared clubhouse between multiple associations). Two distinct bylaws are mandatory.
Q51: How is KAOMA 2025 different from the Maharashtra Act?
Answer: Maharashtra doesn’t have an Apartment Owners Act — it has a Cooperative Societies Act, but its government-vetted Model Bylaws guide all societies in detail. KAOMA is still under development and has not yet published associated model bylaws. The meaningful comparison will be between KAOMA’s model bylaws and Maharashtra’s Model Bylaws, once available. BAF (Bengaluru Apartments’ Federation) has been driving this.
Q52: For a Telangana society (223 flats — 80 larger, 143 smaller), following sq. ft. basis but larger units keep asking for hybrid. Which model?
Answer: If registered under Telangana Societies Act (not Apartment Owners Act), there is no act-level direction — go by bylaws. If registered under TMACOS (Telangana Mutually Aided Cooperative Society), the same applies. Your bylaws are the governing document.
Q53: Hybrid model with four unit sizes — service charges equal, but total bill difference is only ₹400. Residents feel it’s unfair.
Answer: In a hybrid model, larger flats do pay more overall because the per sq. ft. components (sinking fund, repair fund, insurance) are proportionally higher. If you’re following Maharashtra Model Bylaws, your calculation method is defensible and answerable.
Q54: In Karnataka, can a one-time lift replacement fund be collected on a 2BHK/3BHK flat rate?
Answer: No. Lift replacement adds to property infrastructure and value — it is an ownership expense, not a usage expense. It must be on a per sq. ft. basis. A flat rate would be hard to justify legally.
Q55: Asset replacement collected as a one-time charge on flat rate, voted in EGM with majority. Can it be challenged?
Answer: Yes, it can be challenged. Asset replacement = long-term ownership expense. It must be on a per sq. ft. basis. A flat rate for this specific type of expense is hard to defend legally, even with majority approval.
Q56: Parking system changes require additional infrastructure (e.g., stack parking with AMC). Who should bear the cost?
Answer: Follow the Model Bye-Laws for guidance. A similar approach to EV infrastructure can be applied — where those benefiting may bear the cost directly, or it can be shared based on General Body approval.
Q57: We are a 223 flat community registered under Telangana Societies Act — 80 larger units, 143 smaller. Following sq. ft. basis but hybrid model is requested. How to approach?
Answer: If registered under Telangana Societies Act, there is no act-level guidance — your bylaws govern. If larger units are pushing for hybrid, conduct an SGM or AGM with proper notice and voting. The hybrid model is defensible if adopted transparently.
Q58: Can an association registered under Cooperative Societies Act apply interest on late payments and violation penalties?
Answer: Yes, as long as it’s in your bylaws. Use Maharashtra’s 21% p.a. maximum as a precedent. Note: In Karnataka, societies under the Cooperative Societies Act may not even have legal authority to collect maintenance charges for common areas — another reason to migrate to AOA or KAOMA.
Q59: How can an owner approach courts if the MC refuses to conduct an AGM/SGM?
Answer: Non-conduct of AGM is a violation of your act and bylaws. All apartment ownership acts mandate at least one AGM per year. Owners can take legal recourse. Courts take a very dim view of MCs that bypass the democratic general body process.
Q60: Can associations rent out common areas?
Answer: Yes. Associations can rent out common spaces such as commercial kiosks or facilities if the decision is approved by the General Body and permitted by the bylaws. This income, under the principle of mutuality, may not be taxable if used for community purposes — validate with a tax expert.
Q61: If the committee is unwilling to install CCTV in parking areas, what can a resident do?
Answer: Raise this as an agenda item in the General Body Meeting. If you can demonstrate a clear need (safety concerns, vandalism) and get support from other owners, the proposal can be approved based on majority vote and available budget.
Q62: Member only pays principal, not interest on corpus. Can bylaws set priority of payment — interest before principal?
Answer: Not explicitly in any act or model bylaw, but the financial industry standard applies — interest first, then principal. Any payment received first clears the late payment penalty, then applies to the outstanding principal amount.
Q63: Two flats have a land-owner vs. builder dispute, no occupancy. Should we charge maintenance?
Answer: Yes. Set up those units in ADDA, assign a bill-to party (whoever is the owner on record), and send invoices every month. It is a legal demand. If the billed party disputes ownership, they must provide proof. The association must raise invoices for all units in the property.
Q64: Society has both flats and commercial units in Maharashtra — how to distribute maintenance?
Answer: Practices vary — some charge all units at the same sq. ft. rate; some charge commercial units at a higher rate given different electricity meters, higher footfall, etc. Maharashtra Model Bylaws don’t explicitly address mixed residential-commercial scenarios. ADDA has committed to checking with its ASP (accountant specialist) network in Maharashtra and following up with a specific answer.
Q65: Registered under KSR 1960 Act, migrating to KAOMA 2025. Mixed units — flats, service quarters, parking, shops. Can we charge them separately?
Answer: Yes. Create different maintenance models for different unit types. Shops (commercial) can be charged differently from residential units. Parking slots cannot be charged on a per sq. ft. basis since the purpose of usage is entirely different. Align your calculation method with the logical purpose of each unit type.
Q66: Do the same maintenance rules apply to Apex Associations?
Answer: Not necessarily. The rules depend on the act under which the Apex Association or federation is registered. Each entity has its own bylaws and legal framework.
Q67: Is it mandatory to show detailed line items in maintenance invoices?
Answer: Not always mandatory, but itemized invoices are strongly preferred as they provide greater transparency and are far easier to defend in disputes or legal proceedings.
Q68: Should we move from Tamil Nadu Societies Act to Tamil Nadu AOA 2022?
Answer: Strongly advisable. Tamil Nadu AOA 2022 is one of the most modern apartment ownership acts in India, with detailed ownership rules. ADDA can help set up a separate entity on the platform during the transition (new entity name, PAN, etc.).
Q69: We are registered under Travancore Cochin Literary Scientific and Charitable Societies Registration Act 1955. Does it support a hybrid model?
Answer: That act is a generic society act with no specific direction on property maintenance. Your bylaws are your only guide. Adopt a transparent, majority-approved method using Maharashtra Model Bylaws or AOA as a reference.
Q70: What is the significance of shares in Maharashtra? Should maintenance be proportional to shares owned?
Answer: In Maharashtra, owners hold shares in the society rather than undivided interest as in other states. For maintenance purposes, sq. ft.-based calculation still applies since it ties to construction cost and ownership value.
Q71: Can societies split maintenance charges into components to avoid GST?
Answer: This approach is generally discouraged because authorities may treat maintenance services as a bundled offering and apply GST on the total amount. Consult a CA before restructuring invoices for this purpose.
Q72: Is GST applicable on borewell water supply or generator power usage?
Answer: GST applicability depends on whether the service involves processing or treatment. Associations are advised to consult tax professionals for clarity in specific cases.
Q73: If residents pay electricity bills directly to the utility provider, does GST apply?
Answer: No. Electricity supplied directly by government utilities is exempt from GST.
Q74: GST — if some apartments have CAM below ₹7,500 and some above, does GST apply to all?
Answer: A dedicated GST session will be conducted separately. ADDA’s blog has detailed GST guidelines. The GST Q&A from the previous workshop will also be shared with all attendees.
Q75: Is income tax applicable to societies under the principle of mutuality?
Answer: Under the principle of mutuality, income tax may not apply to contributions from members used for common purposes. However, tax may apply on excess income or non-member income. This varies by jurisdiction — validate with a tax expert. Importantly, societies should not distribute year-end surplus back to residents under the mistaken belief that it is taxable profit. It is not. Carry it forward as a fund.
Q76: Can multiple RWAs file a Supreme Court petition asking all states to update their apartment acts?
Answer: Please do. Ideally push for one unified central act for all states. Currently, diverging state acts create significant confusion. ADDA fully supports this effort.
Q77: Will ADDA help set up different billing/invoicing items?
Answer: 100%. ADDA has been automating CAM billing since 2009 with full flexibility to configure hybrid models, multiple line items, different formulas by unit type, and late payment interest methods. Keep late payment penalty simple — flat rate or simple interest, not complex tiered structures.
Q78: We have a welfare fund contribution — EC team members get a waiver from it. Is this acceptable?
Answer: Acceptable, as long as it’s decided transparently in a General Body Meeting, voted on, and listed in the bylaws. Many communities offer such incentives to attract MC nominations.
Q79: If charges are for common usage, why should vacant flats pay maintenance?
Answer: Common facilities are maintained for all units equally, whether occupied or not. Costs like security, housekeeping, and infrastructure upkeep exist regardless of usage. Maintenance charges are therefore shared by all unit owners, including those with vacant flats.
Q80: STP charges — 1BHK has 1 washroom, 2/3BHK has 2 washrooms. How to charge?
Answer: STP is a day-to-day operational expense → falls under water charges → equal basis in the hybrid model. If you have water meters, consumption-based billing covers STP as well. Without meters, equal distribution is the standard.
Q81: People argue that one apartment has one resident and another has six. Resources like STP water (not government-supplied) will be mismatched. Meters are not possible.
Answer: Without meters, consumption is very hard to justify on a per-person or per-usage basis. Even headcount doesn’t accurately reflect water usage — individual habits vary significantly. Equal distribution is the practical default when metering is not feasible.
Q82: Can associations use redevelopment corpus funds differently — e.g., parking in society’s possession to reduce future maintenance?
Answer: Redevelopment-related guidance is specific to Maharashtra, which has more advanced frameworks like deemed conveyance. This was not covered in the current session. ADDA will share a more specific answer after consulting with relevant experts.
Q83: Is the bylaw separate for a society and a federation or association?
Answer: Yes. Every registered legal entity has its own bylaws. A federation is also a separately registered association with a distinct purpose. Two distinct bylaws are mandatory, covering the different scope and purpose of each entity.