We have 3 apartment that are business owned, 1 apartment belongs to the builder who uses this apartment for his staff. 2 other apartments are owned by a PSU Petroleum Giant. Both pay the maintenance fee Annually at the start of the financial year which is April each year.
One Company pays in full. the PSU deducts 2% as TDS. We are a small society, Our Totall monthly maintenance collection is Rs 38,593.00 per month or Rs. 4,63,116.00 Annually. This just about sufficient to pay to 3 AMC, (one more likely to be added) and cleaning and gardening staff. without taking in to account the bonus we give to staff on resigious occasions. We alos incurr account for maintenance wrere we do not have AMC.
Needless to saw at times it has been difficult to get all to pay on time.
However, the TDS deducted by the PSU is around Rs. 700 each year.
I don't think that is fair as the company in our eyes is a resident and as a resident the maintenance fee should be the same as everyone else (the fee ofcourse varies in proportion to the size of apartment, which has been changed from sq.ft to number of bedroom). We do not have an account head "Sinking fund" but we do collect when we need to say paint the common area and exterior based on proportional sq.ft of the apartment to the Budgeted cost).
My question is it right for the PSU to deduct 2% TDS?
Regards
George Rego
CAclubindia
