Introduction of Housing Society (RWA):
Registering a housing society in India involves several steps and procedures.
In most states in India, including Maharashtra, the minimum number of members required for the registration of a housing society is generally specified in the respective Cooperative Societies Act or Cooperative Societies Rules. In Maharashtra, as per the Maharashtra Cooperative Societies Act, 1960, and the Maharashtra Cooperative Societies Rules, 1961, the minimum number of members required to form a housing society is 10.
In Tamil Nadu, the minimum number of members required to form a housing society is seven (7). This minimum requirement is specified under the Tamil Nadu Cooperative Societies Act, 1983.
1.Formation of Core Committee: Before registration, a core committee comprising a group of individuals interested in forming the housing society should be established. This committee will oversee the registration process and initial activities of the society.
2.Selection of Name: Choose a unique name for your housing society. Ensure that the chosen name complies with any guidelines provided by the authorities.
3.Drafting of Bye-Laws: Prepare the bye-laws or rules and regulations governing the functioning of the housing society. These should include details regarding membership, management, rights, and duties of members, etc.
4.Documentation: Gather the necessary documents for registration, which typically include:
Memorandum of Association (MoA)
Articles of Association (AoA)
Bye-laws of the society
ID proofs and address proofs of the members
Address proof of the proposed registered office of the society
5.Application for Registration: Submit the application for registration of the housing society to the concerned authority. In India, this is typically the Registrar of Cooperative Societies.
6.Verification and Approval: The Registrar will verify the documents and information provided. If everything is in order, the Registrar will issue a Certificate of Registration.
7.Payment of Fees: Pay the requisite registration fees as prescribed by the authorities.
8.Registration Certificate: Once the registration is approved, the Registrar will issue a Registration Certificate. This certificate serves as proof of the society's legal existence.
9.Post-Registration Formalities: After registration, the housing society must complete certain formalities, such as opening a bank account in the society's name and obtaining a PAN (Permanent Account Number) for the society.
10.Commencement of Operations: Once all formalities are completed, the housing society can commence its operations according to the bye-laws and regulations.
Housing Society various compliance and due date
The mandatory compliance requirements for housing societies in India can vary slightly depending on the state laws and regulations. However, some common compliance obligations and their due dates applicable to housing societies across India include:
Annual General Body Meeting (AGM):
Typically, AGMs should be held once every financial year.
The meeting should be conducted within six months from the end of the financial year.
For example, if the financial year ends on March 31st, the AGM should be held by September 30th of the same year.
Submission of Annual Report and Audit Report:
Housing societies are required to prepare and submit the annual report along with the audit report to the Registrar of Cooperative Societies.
This submission should be made within a specified period after the end of the financial year, usually within six months.
Filing of Annual Returns:
Housing societies are required to file annual returns with the Registrar of Cooperative Societies.
The due date for filing annual returns is typically within six months from the end of the financial year.
Renewal of Registration Certificate:
The registration certificate of the housing society needs to be renewed periodically as per the prescribed timelines.
Payment of Property Tax:
Housing societies are required to pay property tax to the local municipal corporation or authority.
The due date for property tax payment can vary depending on the local regulations.
Insurance Renewal:
Housing societies should renew their insurance policies, such as fire insurance, liability insurance, etc., before the expiry date to ensure continuous coverage.
Submission of Quarterly Returns:
Some states may require housing societies to submit quarterly returns to the Registrar of Cooperative Societies or other relevant authorities, detailing their financial transactions and activities.
Compliance with Statutory Audit:
Every housing society is typically required to undergo a statutory audit annually, and the audit report should be submitted to the relevant authorities within the stipulated time.
Tax Deducted at Source (TDS):
TDS Deduction: If the housing society makes certain payments exceeding specified thresholds (like contractors' payments), TDS needs to be deducted at applicable rates.
TDS Deposit: The deducted TDS should be deposited to the government treasury by the 7th of the subsequent month in which TDS was deducted.
TDS Return Filing: Quarterly TDS returns (Form 24Q) need to be filed by the 31st of the month following the end of the quarter.
TDS Certificate Issuance: TDS certificates (Form 16A) should be issued to the deductees within specified timelines.
GST applicability of housing society
GST Registration:
If the annual turnover of a housing society exceeds the threshold limit prescribed by the GST law (currently Rs. 20 lakhs for most states), the society is required to register for GST.
However, if the turnover is below the threshold limit, the society may opt for voluntary registration if it wishes to avail input tax credit (ITC) on its purchases.
Maintenance Charges Exceeding Rs. 7,500 per Month per Member:
If the maintenance charges collected by the housing society exceed Rs. 7,500 per month per member, then the society is required to register for GST.
The threshold limit of Rs. 7,500 is calculated per month per member, meaning if any member's monthly maintenance charges exceed Rs. 7,500, the society is liable for GST registration.
Services Provided by Housing Societies:
Housing societies typically collect maintenance charges, parking fees, sinking fund, etc., from their members.
Services provided by housing societies to their members, such as maintenance and repair services, are exempted from GST. Therefore, no GST is applicable on these services.
However, if a housing society provides any taxable services other than those exempted, such as renting out a hall for events or leasing parking space to non-members, GST may be applicable on such services.
Input Tax Credit (ITC):
If a housing society is registered under GST, it can claim input tax credit on GST paid on goods and services used for providing taxable services, subject to certain conditions.
Exemptions:
Certain exemptions are available under GST for specific categories of housing societies, such as affordable housing projects approved by the relevant authority.
Composition Scheme:
Housing societies with an annual turnover up to Rs. 1.5 crores (Rs. 75 lakhs for special category states) have the option to opt for the composition scheme under GST. However, societies availing this scheme cannot claim input tax credit.
