Category: Society Accounting Software

A Treasurer’s Guide to TDS on Apartment Associations

What is TDS?

TDS stands for tax deducted at source.

As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits.

Is TDS applicable for Co-operative Housing Societies and Apartment Associations?

Yes. Under the Income Tax Act, a Cooperative Housing Society is taxable entity. It is mandatory for any registered co-operative housing society / apartment association to deduct TDS, pay deducted TDS to Government on time, file TDS Returns on time and issue TDS certificates to deductees on time.

What happens if an Apartment Association does not deduct TDS?

If an apartment association fails to deduct tax at source, then the ASSESSING OFFICER has powers to disallow whole of such payments made as expenditure when arriving at taxable profits for such apartment association. For example, ABC CHS  paid a single security agency Rs 10,00,000/- during the year and failed to deduct tax on the same, then the Assessing Officer has powers to disallow entire Rs. 10,00,000/- as your expenditure (which means ABC CHS’s “profits” will increase by Rs. 10,00,000/- and Income Tax will be levied on the same).

What is amount/percentage to be deducted as TDS by our Housing Society?

The amount of TDS to be deducted depends on 4 major components:

(a) The nature of services for which payment is being made. Services fall under different sections of IT Act.

(b) If the receiver of payment (Vendor) is  an Individual / Organization

(c) Value of a single Bill raised by the Vendor being made

(d) Total Value of Bills raised by the same vendor during the financial year

While there are many sections that are applicable, most relevant and commonly applicable sections in case of Apartment Association / Housing Society are below:

Section Details TDS Rate Threshold for TDS Applicability
Section 194C – Payment to contractor/sub-contractor – Individuals / HUF 1% a) If sum paid or payable to a contractor in a single payment exceeds Rs. 30,000
b) If sum paid or payable to contractor in aggregate exceeds Rs. 75,000 during the financial year (Rs. 1,00,000 w.e.f. 1-6-2016)
Section 194C – Payment to contractor/sub-contractor – Others 2% a) If sum paid or payable to a contractor in a single payment exceeds Rs. 30,000
b) If sum paid or payable to contractor in aggregate exceeds Rs. 75,000 during the financial year (Rs. 1,00,000 w.e.f. 1-6-2016)
Section 194I – Payment towards Rent – Plant and Machinery 2% If amount paid or payable during the financial year exceeds Rs. 1,80,000
Section 194I – Payment towards Rent – Land, Building, Furniture or Fitting 10% If amount paid or payable during the financial year exceeds Rs. 1,80,000
194J: Any sum paid by way of a) Fee for professional services, b) Fee for technical services 10% If amount paid or payable during the financial year exceeds Rs. 30,000
Section 192 – Payment of Salary As per Slab Rates of the Salary If net taxable income is more than maximum amount which is not chargeable to tax (Rs. 2,50,000 for an individual, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens).

You can refer TDS Rate Chart on Income Tax Website for comprehensive list of sections and the latest rates.

All these can be easily configured in ApnaComplex Society Accounting module.

When should the Apartment Association deduct TDS?

TDS should be deducted when (a) Payment is being made to the vendor OR (b) Due date of the Bill raised by the Vendor  – which ever is earlier.

Can you give some examples of TDS calculations in Housing Society?

Below are some frequent use cases:

Example – 1: if a security agency gives a bill for Rs. 2,00,000 on Jul 1st with a due date of July 31st, and the payment is made on Aug 5th – TDS has be to accounted in July itself.

Example – 2: if you are paying a painting vendor an advance payment of Rs. 50,000 to begin work on painting – TDS of Rs. 1000 (2% of Rs. 50,000) has to deducted on the date of payment and only Rs. 49,000/- to be paid to the Vendor.  Ensure you do not deduct TDS again on the Bill when you receive the final bill from the painting vendor.

Example – 3: if you are paying a book-keeping firm in 3 installments during the year-

First Installment – Rs. 15,000 no TDS to be deducted (Total payment during financial year is Rs. 15,000 – which is less than Rs. 30,000 allowed under 194J).

Second Installment – Rs. 12,000/- no TDS to be deducted (Total payment during financial year is Rs. 27,000 – which is less than Rs. 30,000 allowed under 194J)

Third Installment – Rs. 9,000/- 10% TDS to be deducted on Rs. 36,000 (Total payment during financial year is Rs. 36,000 – which is more than Rs. 30,000 allowed under 194J – TDS needs to be deducted for entire amount of Rs. 36,000/-).

It is good practice to deduct TDS with every payment if you are sure that you will have to pay all installments during the year.

Example -4: if you are paying your Maintenance Agency in two installments during the year –

First installment – Rs. 60,000/- TDS to be deducted at 2% (as single payment is more than Rs. 30,000)

Second installment – Rs. 15,000/- No TDS (as single payment is less than Rs. 30,000 and total payments during the year is not more than Rs. 1,00,000)

Example -5: if you are paying your Maintenance Agency in three installments during the year –

First installment – Rs. 25,000/- No TDS to be deducted (as single payment is less than Rs. 30,000 and total payments during the year is Rs 25,000 which is not more than Rs. 1,00,000)

Second installment – Rs. 25,000/- No TDS (as single payment is less than 30,000 and total payments during the year is Rs 50,000 which is not more than Rs. 1,00,000)

Third installment – Rs. 25,000/- No TDS (as single payment is less than Rs. 30,000 and total payments during the year is Rs. 75,000 not more than Rs. 1,00,000)

Should TDS be calculated on the Bill Amount including GST or Excluding GST?

Taxes must be excluded for purposes of TDS calculation.

For example, if your vendor gives you a bill for Rs. 50,000+18% GST – TDS is to be calculated only on Rs. 50,000/-

By when should we pay TDS to Government and how do we pay the amount?

Except for month of March, all amounts deducted as TDS in a given month needs to be paid on or before 7th of subsequent month. For month of March the due date date of payment is April 30th.

Non-payment or late payment of TDS will attract interest @ 1.5% per month until the tax has not been deposited.

Refer Income Tax Website on How to Pay the TDS deducted to Government online. Challan  type 281 is used for TDS payments. Please refer this extensive Do’s and Don’ts to avoid errors while making the payment provided by NSDL.

What are TDS Returns?

After paying TDS every month, the apartment association needs to file TDS Returns. A TDS Return is a quarterly statement which has to be submitted to the income tax department every quarter. TDS returns has details of

(a) PAN of the deductor (your PAN number)

(b) PAN of deductees, particulars of tax paid to the government against each deductee,

(c) TDS challan information and other details

There are different forms to be used for different types of TDS deductions and deductees. For most housing societies and apartment associations, Form 26Q is the most relevant as it deals with all non-salary deductions.

Filing TDS is a slightly complex process. We recommend you take professional help from your auditor to file error-free, timely returns as there are penalties and late payment interest for non-filing/late-filing/filing with errors. If you are interested in filing on own, you can refer TDS Return filing manual.

What is the due date for filing TDS Returns?

TDS returns need to be filed for every quarter. For Apr-Jun quarter – filing needs to be done by 31st July. For Jul-Sep quarter – filing needs to be done by 31st Oct. For Oct-Dec quarter, filing needs to be done by 31st Jan. For Jan-Mar quarter, filing needs to be done by May 31st.

Filing TDS returns on time is mandatory for every deductor, failing which deductor will attract late payment fees @ Rs 200/- per day until the return is filed. However, this amount shall not exceed the amount of tax. In addition to this ASSESSING OFFICER may direct the deductor to pay penalty minimum of Rs. 10,000 which may extend to Rs.1,00,000.

My Vendor is asking me NOT to deduct TDS on his/her payment as they are exempt. What should I do?

Request you vendor to submit a letter/certificate issued by Income Tax Department providing such exemption. (In order to get such certificate your vendor needs to reach out to IT department seeking exemption by filing Form 13/15G/15H.)

My Vendor whom I deducted TDS is asking me to provide TDS Certificate / Form 16A. What do I do?

TDS certificates are issued by the deductor (the person who is deducting tax) to the deductee (the person from whose payment the tax is deducted). . These certificates provide details of TDS for various transactions between deductor and deductee. It is mandatory to issue these certificates to your Vendors every quarter. There are mainly two types of TDS certificates issued by the deductor:

(a) Form 16 : is issued by the employer to the employee incorporating details of tax deducted by the employer throughout the year

(b) Form 16A : is issued all non-salary related deductions. This is most relevant to Apartment Associations.

To get Form 16A: Its best to take professional help to obtain the same. If your auditor has filed your TDS returns, usually s/he will provide the same to you. Please ensure you have obtained them and mailed / distributed the same to your vendors every quarter.

If you are self-service oriented:  Login to Government’s TRACES (TDS Reconciliation Analysis and Correction Enabling System) You may have to register as a new user if this is the first time your society is deducting TDS.  Post that follow the steps on the TRACES system to download Form 16A.

What are pre-requisites to deduct TDS?

Apartment Association needs to have a TAN (Tax Deduction Account Number). It is 10 digit alpha numeric number required to be obtained by all entities who are responsible for deducting or collecting tax. It is mandatory to quote TAN allotted by the Income Tax Department on all TDS returns. The procedure for application of TAN is very simple and can be done online.  Apply For TAN  on NSDL Site.

Does ApnaComplex Accounting handle TDS?

Absolutely. In ApnaComplex Society Billing and Accounting module, you can have the ability to:

(a) Capture PAN/TAN/TDS Rate for each vendor as  part of master setup.

(b) Record Vendor Bills and Advance Payments to Vendors along with TDS deducted. ApnaComplex will automatically calculate TDS for a given vendor’s bill based on the TDS rate configured.

(c) Easily maintain different TDS Payable Ledgers per different sections (such as 194C, 194J)

(d) Get Monthly Report of all TDS Deducted to arrive at your liability to Government

(e) Record the payments made to Government under TDS/Tax Payments section.

(f) All necessary accounting entries are auto-magically taken care of by the platform.

In addition, ApnaComplex has a strong eco-system of partners offering Accounting and Auditing Services to Housing Societies using ApnaComplex platform. You can reach out to us with your society details and we shall put you in touch with professionals you can ensure TDS compliance for your apartment association.


Disclaimer: This information is offered as a public service. While we try to make it accurate as possible as on the date of publication, the laws change and more importantly the way we interpret laws could also change. We cannot promise that this information is always up-to-date and correct. We strongly recommend you to always consult appropriate professional advisers for your society to ensure compliance. We are not responsible for any actions or non-actions that are done by you based on the information present in this article or any other article on this blog.


Collection Gateway – Smart way of paying Housing Society Dues

Collection Gateway is a unique solution offered by ApnaComplex to make a Housing Society collections 100% Cashless.  Collection Gateway was launched in later part of 2015 and is now used by thousands of apartments every month to pay  their maintenance and other dues to the society.

Customers using Collection Gateway have immensely benefited from

(a) Automated Receipt issuance for IMPS/NEFT payments made by members

(b) Lower convenience charges (and almost negligible) compared to Payment Gateway

(c) Zero Suspense Entries in the Society’s Bank Account

Societies adopting Collection Gateway shall see the benefits instantly. The efforts put in by treasurer drops by close to 90%. For societies using an accountant to manage book – Collection Gateway saves significant efforts as the following activities are eliminated:

(a) Responding to member’s queries on the payment they have made but receipt was not yet issued

(b) Checking Bank statement every other day to issue receipts

(c) Sending Notices to Owners/Residents on Suspense Deposit Entries in the Society’s Bank Account

(d) Easy/Automated publishing of Defaulters Report as the report is always accurate without any manual intervention

(e) Automated Email/SMS/Push Reminders to Follow up on Defaulters

In short Collection Gateway helps in reducing your society maintenance efforts and thus the Society Maintenance Charges.

Best of all, Collection Gateway works with your existing Bank Account of the society and existing Bank Accounts of the Members. There is NO NEED to open a new Bank account – either by Society or by Members.

Please refer to our Collection Gateway page for more details.

Reach out to us to adopt Collection Gateway and save both Costs and Efforts.


GST on Co-operative Housing Societies Maintenance Dues / Common Area Expenses

Impact of GST on Co-operative Housing Societies Maintenance Dues / Corpus Fund / Common Area Expenses

Co-operative Housing Societies are merely a collecting and pass through mechanism like in case of property tax, water charges, common area repairs and maintenance etc. It can be contended that no activity is carried out by a society for its members. There may be various service providers providing service to the society which is the legal owner of the building including that of common areas, for e.g. repairs service providers, maintenance service providers, security agencies etc. Thus, the society is receiver of service and not provider of service. If a member’s flat or office premises require repairs, the same is obtained directly by the member and the society is not involved in provision of that service. Further no consideration is flowing from the members to the society except allocation and collection of expense. Any such payments without quid-pro-quo of a service cannot be liable to tax. Thus, it can be argued that even under the new dispensation, service tax is not applicable in case of a co-operative society when any activity is carried out for no consideration and the same would be continued under the GST Act.

Service tax on co-operative societies is a contentious issue. In a co-operative housing society, the land and building belongs to the society and the members by virtue of their membership of the society have right to occupy, enjoy and transfer their flats, subject to the prevailing rules and regulations and bye-laws of the society which are required to be approved by the specified authorities under the law. A co-operative housing society is a collective mechanism wherein it make payments of property tax and like payment to the municipal corporation and other Government bodies, incur some expense for common good and allocate and collect the expense in form of certain charges from the members on some basis or as per the resolutions passed in the General Body Meetings. Such collections are generally in the form of reimbursements. Some of the functions of a co-operative housing society are statutory functions like transfer of shares of the members with the underlined interest in the property (flats). It works on mutuality principles as the function of the society is for the members and by the members. Though it is not the objective, it is possible that at the end of a particular period, the society may generate some surplus which is used for members in future. In case of deficit, the same is made good by contributions from its members. However, such surplus or deficit cannot be said to be consideration for providing any service.

It is clear that a co-operative housing society collects the expenditure incurred either for some specific purpose like municipal taxes, water charges etc. on the basis of area of flats or some other appropriate basis. Such recoveries are in the nature of reimbursements. There is no element of service in case of “reimbursement of expense” and thus the charge (S. 66) fails as per the judgement of Hon’ble Delhi High Court in one of the case. If viewed in this context, service tax or GST on Co-operative Housing Societies cannot be applied on mere allocation / collection / reimbursement of expenditure. Some of the expenditures classified as follows are taxable under the current tax regime:

  1. Property Tax:

Collection of property tax is statutory levy by a municipal corporation or a local authority under the Constitution of India. A society is a mere collecting agent and pays the same to the authority. There is no element of service in it. Even assuming it as a service, it is not provided for a consideration. Hence service tax is not leviable. As an abundant caution, the society should ensure that the amount collected from the members does not exceed the actual amount. Same taxability would be continued under the GST Act.

  1. Maintenance and Repair Charges:

‘Maintenance’ as the name suggest is the amount collectively reimbursed to the society to upkeep and maintain the building and premises on regular basis. The members of the society pay maintenance charges on some predetermined basis as decided in the General Body Meeting. Electricity charges for common areas, watchman or security charges and other miscellaneous expenses incurred by the society including accounting, audit etc. is part of maintenance charges. Service tax may be applicable on this. If the actual service provider in relation to any input service, charges service tax in his bill, the society would be eligible to take CENVAT credit of the same and the same taxability would be continued under the GST Act.

  1. Parking Charges:

Car parking is in relation to regulate the parking place between the members and providing of space by use of vacant land belonging to the society for a consideration. There is an element of service in it and thus service tax may be leviable and the same taxability would be continued under the GST Act.

  1. Water Charges:

Water is “goods” under the Sales of Goods Act, 1935. However, the society is not selling the water to its members. It is just providing the pipeline to deliver water in the members’ premises. So long as it is collecting actual amounts as charged by the municipal corporation, there may not be any consideration. Therefore, charges recovered from members on actual basis are not liable to service tax. In the event of collection of water charges exceeding the payments, only such extra amount can be chargeable to service tax. In relation to water for common use like swimming pool, garden, club house etc., it is advisable to have separate meter and separate collection from the members. Such charges for use of water for common purpose may be liable to service tax and the same taxability would be continued under the GST Act.

  1. Charges for use of Club House, Swimming Pool, etc.:

These are specific services by the society to the member opting for such facilities. Any consideration paid for this would be liable to service tax and the same taxability would be continued under the GST Act.

  1. Share Transfer Fees and Donations:

Share transfer fees are the amount charged by the society for transfer of shares when a member approaches for its consent for transfer of his flat. It falls within the definition of service as a consideration for an activity carried out for the member for transfer of his lat. There is an element of service in it and service tax may be leviable on the same and the same taxability would be continued under the GST Act.

  1. Sinking Fund:

It is a fund which is collected by the members of the society to set aside money over a time of period to meet the eventuality of reconstruction of the building. It is obligatory for a housing society to collect Sinking Fund under the Maharashtra Co-operative Societies Act, 1960 and rules made thereunder. The fund collected from a member is transferred to new member if the original member ceases to be a member. No definite service or contractual obligation is involved so far as collection of sinking fund is concerned. It’s a mere collection from the members of the society.

  1. Repair Fund/Painting Fund:

Like sinking fund, this is also a mere collection to meet eventuality of major repair expenditure in future. There is no promise to provide a definite service with any identified time frame. No expense is also identified. It is also not sure that a member from whom the repair fund is collected would be a receiver of service at the time when it is actually provided. The agreement to provide service to the member is absent. However, as an abundant caution, the society should bring out this candidly in the resolution pertaining to collection of repair fund to avoid any ambiguity.

  1. Non Occupancy Charges

Non occupancy charges are charges levied by a housing society only when a flat or unit is let out by its members. A unit in a co-operative Housing Society is for occupation and enjoyment of its members. The permission of the society is necessary when the unit is let out. The society may accord its permission in accordance with the provision of its bye-laws and on payment of some periodical charge. Such charge is a consideration for agreeing to let out its premises and may be liable to service tax. Thus any consideration for allowing a member to let out his premises may be liable to service tax under the relevant clause of the Finance Act, 1994 and the same taxability would be continued under the GST Act.

In terms of above discussion, all the charges upon which service tax is leviable if it exceeds the limit of Rs. 5,000 p.m. per member in a housing society. If a person owns two flats, for all practical purpose it would be considered as two members. The exemption would be accordingly computed and then the remaining would be liable to service tax and the same taxability would be continued under the GST Act.

Rate of Tax and Exemption Benefit under GST

As per existing Tax structure currently service tax is charged @ 15% & whereas as per proposed GST tax @ 18% will be charged on Supply of Services but in existing tax structure assesses is not able to take the input tax credit benefit of goods & services whereas in proposed GST system assesses will be able to take credit of supply of both goods & services which will cover difference of additional 3% GST on Co-operative Housing Societies up to a level.

However, the exact rates applicable to particular goods and services have not been yet finalized for GST on Co-operative Housing Societies.

Update on 31st May 2017:

Following exemptions are provided under the GST Regime for Housing societies (Source : Schedule of GST Rates for Services)

  • In case of a housing society or residential complex, the exemption is limited to 5,000 p.m. per member for sourcing of goods or services from a third person for the common use of its members.
  • Total Maintenance Recovery from members of the Society is less than 20 Lakhs per Annum.

RWA / Housing societies will need to charge 18% GST to its members if maintenance recovery is more than Rs.5,000/- per month per member AND if total maintenance recovery by the society exceeds Rs. 20 lakhs per annum. Accordingly, societies who fulfill either of the conditions will need to register under GST and charge 18% on their collections from Members from July 1st on wards. Please note that the Rs. 5,000/- per member per month exemption was available in the Service Tax regime as well and is being continued under GST regime.

Update on 13th July 2017:

Govt. has issued a press note on GST applicability on RWAs. You can read the press release here – http://pib.nic.in/newsite/PrintRelease.aspx?relid=167386

GST needs to be levied only if monthly maintenance per member crosses Rs. 5,000/- and annual collection is more than 20 Lakhs. This blog post is updated accordingly.

ApnaComplex strongly recommends Housing Societies to talk to their respective auditors and get professional advice to understand the actual impact for your Society and if you need to register for GST. 


**Visit GST Section on ApnaComplex Help site to see answers to various frequently asked questions on GST**


Disclaimer: This information is offered as a public service. While we try to make it accurate as possible as on the date of publication, the laws change and more importantly the way we interpret laws could also change. We cannot promise that this information is always up-to-date and correct. We strongly recommend you to consult appropriate professional advisers to understand the actual impact for your society. We are not responsible for any actions or non-actions that are done by you based on the information present in this article or any other article on this blog.


new year resolution

5 Ways To Decide On A New Year Resolution That Doesn’t Need Work

It’s that time of the year when almost everyone around you is coming up with ways of making the incoming year more productive. Some people have been planning their new year resolutions since the latter half of the year. Piling on one promise after another with a failed attempt at each is not the way to go, is it? Well, ApnaComplex is happy to lend a helping hand. Here are 5 easy new year resolutions in case you haven’t got on to the ‘change is good’ wagon yet. Trust us, these are more helpful than you’d know.

 

  • Save water –

With all the global warming signs getting bigger and bigger, doing your bit for the planet will only make you feel good about the next year. Tracking water usage levels and avoiding water wastage is one option. ApnaComplex provides you with Water Monitor, a water tracking app that allows you to track the volume of water being used by your society. A plus point is that it tracks the billing as per water usage too. Find out more about Water Monitor here.

new year resolution

 

  • Avoid preventable theft –

This one leans towards those who have faced theft issues in the past. Why offer a chance when there doesn’t have to be one? One aspect of this problem is vehicle theft. ApnaComplex’s solution to that is Vehicle Sentry, a vehicle tracking system that lets you stay aware of your vehicle’s whereabouts. Know more about Vehicle Sentry here.

new year resolution

 

  • Family safety –

For all those who believe that safety in any form can never be enough, ApnaComplex has Gatekeeper, a visitor tracking app. Gatekeeper lets you know about your visitor beforehand and lets you verify their entry. Be aware of who knocks on your door. Stay alert with Gatekeeper here.

new year resolution

 

  • Spend less –

Everyone can cash in on this new year resolution. Spending less is never an idea that is unwelcome. One way of going about with this is by holding less change in your pockets and using cashless services. Collection Gateway by ApnaComplex is another such service that lets you pay maintenance dues via NEFT or RTGS. Here’s why Collection Gateway should be your new year resolution this year.

new year resolution

 

  • Make lives easier –

Why not have an easy management system in place for those who work hard at settling the books in your society? Get some good karma under your belt by getting ApnaComplex for your society. Keep track of reminders, bill and maintenance payments and vendors of your society in a more automated manner. This is one of the most easiest ways of fulfilling a new year resolution, don’t you think?

new year resolution

 

So, this time, let’s all make a promise to ourselves to move forward with the new year resolutions we choose. Good luck chasing the new life!


Product Enhancement: Pay Society Dues on Mobile

It can’t get easier than this for Apartment Owners and Tenants to pay their society dues.

Owners/Tenants on ApnaComplex can now pay all their society dues using Credit Card / Debit Card / Net Banking from the latest version of our Android App. You can download the latest version of app from Google Play Store.

In case your society is not yet utilizing the Payment Gateway feature and want to start using the same, please reach out to us to enable the same for your society. The payment gateway setup charges are completely waived off for a limited time.


Swachh Bharat Cess – Service Tax Changes for Housing Societies and Apartment Owners Associations

As per the recent service tax notifications (Notification No. 21/2015-Service Tax and Notification No. 22/2015-Service Tax), all organizations that offer services covered under the ambit of Service Tax, should charge an “Swachh Bharat Cess” at 0.5% of the service value from November 15th 2015.

Housing Societies need to collect and pay service tax at the rate of 14% for all members where the monthly collection is more than Rs. 5,000/- (Refer Jan 2014 Circular on Service Tax on Apartment Associations for more details). Other key aspects of interest are listed below.

Swachh Bharat Cess needs to be on a separate line item on invoice

From Nov 15th, the invoices need to have another line item called “Swachh Bharat Cess” charged at the rate of 0.5% value of the taxable amount. Based on our understanding, Swachh Bharat Cess needs to be charged separately on the invoice, needs to be accounted separately in the books of account and needs to be paid separately under separate accounting code which should be notified separately.

Swachh Bharat Cess paid for services availed cannot be claimed as Input Credit

Cenvat Credit Rules, 2004 determine if a tax / cess can be claimed as input credit. Howver, there is no amendment in the Cenvat Credit Rules, 2004 regarding Swachh Bharat Cess. In the absence of the same, Swachh Bharat Cess levied by the Housing Society vendors and paid by the Housing society cannot be claimed as input credit. So, at this point in time, this would be extra cash outflow on the society due to Swachh Bharat Cess.

What should you do in ApnaComplex to take care of this additional cess on the invoices you raise?

If your society is levying Service Tax, identify the best scenario that fits you among the below to know the steps.

Scenario 1: If you are using recurring invoice with automatic service tax calculations, you need not do anything. ApnaComplex is enhanced to charge this as a separate line item on the invoices raised after Nov 15th.

Scenario 2: If you are using recurring invoice with service tax as a calculated line item, you need add a new charge type with name “Swachh Bharat Cess” and move the same to Taxes accounting head in Chart of Accounts. Post that update your recurring invoice setup to add one more line item with net value equivalent to 0.5% under SB Cess head.

Scenario 3: If you are using manual mode, you need add a new charge type with name “Swachh Bharat Cess” and move the same to Taxes accounting head in Chart of Accounts. Now, go to Income->Add charges (or upload charges) with net value equivalent to 0.5% under SB Cess head.

In all scenarios, we would always recommend you to check with your accounting firm or auditor to ensure they are on board with your understanding.


Launching India’s first Collection Gateway for Housing Societies to automate NEFT Collections

We know how critical Maintenance Due collection is to your Housing Society.
And we also know how much more troublesome it is to reconcile NEFT payments made by members!

Usual troubles include – Members transferring funds and do not update the records, you have to wait for bank statement to be able to issue receipts, bank statements does not have name or flat numbers, suspense entries etc. – the issues are endless resulting in delay in book-keeping, calculating penalty, issuing receipts, publishing defaulters.

Its far too common in almost every society to send a list of “Suspense” NEFT transactions to the entire community asking members to identify their payment.

We are launching India’s first “Collection Gateway” for Housing Societies – where receipts are auto-issued by ApnaComplex when the member does NEFT transfer! A member need not even login into the portal or send mails to society office indicating the payment – ApnaComplex magically knows when the NEFT is done, makes accounting entries and issues the receipt to the member! A comprehensive end-to-end integrated solution.

Zero work for treasurer in issuing/reconciling NEFT receipts.  Zero Suspense Entries.  100% Automation.

For those members who prefer to pay using Credit Cards / Debit Cards we already have Payment Gateway.

With help of both Collection Gateway and Payment Gateway – members have more choices to pay and treasurers have more time to play!

Its high time your managing committee spends their week ends with Family than struggling with NEFT reconciliations and issuing receipts.

Contact us and get rid of your maintenance due collection worries!


Announcing “Bill Approval Workflow” to streamline Expenditure Approvals in your Housing Society

We are pleased to announce the release of Approval workflow for Bills.

Almost all societies have the process of bills submitted by vendors to be approved by one or more committee members before the payment is released to the vendor.  With this new feature, accountants will now be able to trigger a approval workflow when ever a new Bill is received. The approvers can approve / reject the bill with comments. A bill can re-submitted for approval with updated data to the approvers. Unless a minimum number of approvers  approve the Bill, no one would be able to record payment against that Bill.

The approver list is same as PR Approvers and Request Box approvers and thus can be reused.

To enable the approval process, please go to Complex->Settings – Accounting Settings – click on the setting “Should bills be approved before being paid?” to enable the same

Once this is done, when a new Bill is created, you have to select the Approver List to trigger the approval work flow. When ever the setting is disabled – the bills will be treated as automatically approved. To see the approval history of a Bill, click on the ‘Print button’ in actions column to see the approval/rejection history with remarks.

Coupled with the fact that you can attach any number of docs with a bill, you can now easily create a Bill – scan the physical copies of the bill and then trigger the workflow. All approvers can see the physical copies of the bill and then approve/remark with their comments.

Yet another nifty automation by ApnaComplex to save your time and efforts!


Why Chartered Accountants prefer ApnaComplex for housing society accounting?

Chartered AccountantsPresently, the number of apartment complexes in India is growing exponentially. With the growing number of apartment sizes, management committees are looking for some active help from chartered accountants or auditing firms to manage their accounting operations. This scenario offers a huge potential to accountants to grow their business.

Earlier, chartered accountants were using offline software like Tally etc. to manage the accounting operations of housing societies, which made it hard for them to manage multiple housing societies all at the same time. With the growing housing society accounting requirements, accountants have felt the need for a software that helps them reduce their manual work and allows them to login and work from anywhere and everywhere reducing their travel time.

ApnaComplex, a mobile and web-based apartment management and accounting software is a one-stop-solution for all housing society requirements. The software is now increasingly being trusted by chartered accountants (CAs) across India as their technology partner for offering premium service. In this digital era, CAs have quickly understood that by adopting ApnaComplex they can achieve multi-fold growth in their business along with reducing their manual work.

Top reasons why Chartered Accountants prefer ApnaComplex over other software:

Best accounting software across India – ApnaComplex offers online services, with self- service options, integrated with emails, SMS and online payments providing a clear edge over other players.
Helps in saving costs – The accounting software helps in reducing society accounting work effort drastically and automates a lot of accounting processes. Even non-accountants can be employed for data-entry and the self-service option for residents in the software really helps.
Supports in growing business – Not only do the accountants use ApnaComplex for their existing customers but also acquire customers referred by ApnaComplex. As a result, the customer base of accountants grows in size.
Offers convenience to work from anywhere and everywhere – ApnaComplex accounting software enables accountants to enter and access data from anywhere. One does not need to carry all data to a centralized location. Moreover, multiple people can work on entering data of same society in parallel further speeding up the work.
Provides training and support – ApnaComplex offers regular training and support to the CAs on the product and conducts periodic refresher courses, which makes it very simple for the accountants to quickly become a pro in using the software.

Why ApnaComplex accounting software is found to be especially designed for housing society accounting?

ApnaComplex automates the following housing society requirements for the accountants and management associations, making their work way easier:

• Offers readymade flat-wise, head-wise sub-ledger
• Automates unit-wise due generation (Automated Maintenance Payment Reminders – Online Payment facility with automatic updation of all books)
• Provides flat-wise account statement (Distribution of invoices/receipts as PDF files through emails, summary through SMS)
• Automates calculation of late payment interest
• Automates allocation of collection to invoices
• Generates reports

Why as a Chartered Accountant you should partner with ApnaComplex if you still haven’t done it?

Opportunity to acquire new business – With the growing number of apartment complexes adopting ApnaComplex certainly increases your scope to expand your business.
Increase Customer Satisfaction – By partnering with ApnaComplex, you definitely get happier customers as you are empowered to offer smart accounting services with minimal errors always on time.
Gain Competitive Advantage – You can offer the best-in class value add services, which is unmatched in the market to your customers by collaborating with ApnaComplex.
Save on costs – ApnaComplex helps you reduce your manual efforts and even use unskilled workforce to operate the software. Yes, it’s that simple to use! It helps you reduce your costs drastically.

So, partner with ApnaComplex today to create synergy and get powered with technology to offer superior accounting services and maximize your revenue.

Don’t just be a complex, be a smart apartment complex. Get your Society on ApnaComplex.com – Today for free!


Utility Billing Software Enhanced – Raise Utility Bills right from Mobile or Tablet

Gated communities and Apartments having Metered Utilities (like Piped Gas, Water Meters) face this issue every month when they are ready to raise utility bills on members – capturing of Meter Readings and then raising bills.

There is too much of manual work involved in capturing the meter reading. Typical steps involve:

1. Maintenance staff go door-to-door to note down the readings in a log book. This itself is usually takes few days based on the size of the community.

2. The readings noted will now have to be digitized and entered into excel and upload or into the portal one by one. This is a place where quite a few issues can crop up with respect to data entry – illegible readings, typos while entering.

3. Raise Bills. (This is a breeze if you are using ApnaComplex)

4. Now starts the disputes by members – the bill is incorrect, reading is incorrect – largely due to the data entry errors that crept in and more importantly due to lack of validation from concerned members when the meter reading was taken.

In ApnaComplex you can address issues like these with the enhanced Metered Utility Billing module (which is part of the Society Accounting Software).

We now have Metered Utility App available as a part of ApnaComplex Android Application.
Metered Utility Billing now from your Tablet
With the help of the Metered Utility on Android App:

1. Maintenance staff can now move with in the complex / layout with a mobile device (android phone / tablet) when they go door-to-door for collecting the reading.

2. The closing meter reading can be noted against each plot / flat with in the App. The app instantly sends an SMS to the resident confirming the meter reading noted down by the staff. If there is a discrepancy or error the resident an instantly alert the staff or the maintenance office about inaccurate reading. The staff can then re-enter the reading.

3. Once the data collection is done, the society office can validate the data and raise the bills. The meter readings can be overridden if needed by the society office before raising the bills.

Less disputes and more peace of mind.

Now for the icing on the cake:
The meter reading app works even with out internet! This has the capability to store all the readings locally on the device and push the readings to server when ever internet connectivity is available.

This takes care of the cases where internet / GPRS connection may not be easily available across the complex consistently.


Get your Society on ApnaComplex – Today!

ApnaComplex is India’s most mature and comprehensive web based society management platform. The platform also include Utility Billing Software for Housing Societies to easily generate bills for the members of the society against their Flats / Villas / Shops for their consumption of water / gas / energy etc. ApnaComplex is designed to make the life of treasurers a lot better by reducing efforts and at the same time bringing in more transparency and accountability in managing finances of a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 15-day trial as well so that you can try before you buy!