19 November 2018
Sir/Madam, Builder collects maintenance charges before formation of Society of Members, and after formation of society any amount collected in excess is refunded to flat holders in societies bank account or any excess expended is collected from society
Query Where to show amount collected from flat holders and expenses incurred (i.e. in P & L Account or In balance Sheet)
Notes GST charged at time time of collection is 18% i.e. maintenance service provider and ITC is also claimed for services availed
19 November 2018
Let us assume the name to be XYZ society. While collecting charges debit Bank A/c Credit maintenance charges collected for XYZ proposed society.
While incurring expenses Debit maintenance charges collected for XYZ proposed society Credit Bank account.
While transferring balance to XYZ society Debit maintenance charges collected for XYZ proposed society Credit Bank account.
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