Society maintenance charges: what they cover, how they are calculated, who pays

Maintenance is the monthly amount each flat pays the society to run the building. It is the society's main income, and how it is set, billed and collected decides whether the committee spends its evenings chasing payments or not.

What society maintenance charges cover

Most maintenance bills are made of a few heads. Showing each one on the bill, rather than one lump sum, answers most questions before they are asked.

• Service charges: security, housekeeping, the manager or office staff, common area electricity, lift and pump maintenance, gardening, pest control.
• Repair and maintenance fund: routine repairs to the building and common areas.
• Sinking fund: savings for major work years from now, like structural repairs or reconstruction.
• Water charges and, where the society pays it collectively, property tax.
• Parking charges, and non-occupancy charges for rented flats where the bylaws allow.
• Insurance of the building, and one-off special charges approved by the general body.

How maintenance charges are calculated

The society first adds up a year's expected expenses, usually approved in the budget at the AGM, and then divides them between flats in one of three ways:

1. Per sq ft. Monthly expenses ÷ total area of all flats = rate per sq ft. Each flat pays the rate × its area.
2. Equal share. Every flat pays the same amount.
3. A mix. Some heads, often security and housekeeping, are split equally, and the rest by area.

Monthly expenses

₹1,20,000

Total area of 40 flats

48,000 sq ft

Rate

₹2.50 per sq ft

1,200 sq ft flat pays

₹3,000 a month

Try your own numbers in the society maintenance calculator. Some heads, like the sinking fund in Maharashtra, are worked out on the construction cost of each flat rather than on expenses, so they appear as a separate line.

Who pays maintenance when a flat is rented

The owner is the member of the society, so the obligation to the society stays with the owner. Owner and tenant can agree in the rent agreement that the tenant pays maintenance, and many societies bill tenants directly to keep things simple. If the tenant does not pay, the society can still recover the dues from the owner.

The cleanest setup is one where the tenant gets the bill and pays, and the owner sees every receipt, so nothing slips when a flat changes hands.

Is paying society maintenance compulsory?

For members, yes. Paying the charges the society levies under its bylaws is part of membership. Disputes over a charge or over poor service are settled through the committee, the general body or the registrar, not by withholding payment, which only adds interest and can bar a member from committee elections.

For persistent defaulters, state co-operative laws give societies a recovery route. In Maharashtra, for example, a society can apply to the registrar for a recovery certificate under Section 101 of the Maharashtra Co-operative Societies Act, 1960.

Late payment charges and interest

Societies can charge interest on overdue maintenance when the bylaws allow it and the general body has fixed the rate. It is normally simple interest, counted from the due date.

A flat fee for paying late, instead of interest, is also common in apartment associations outside Maharashtra. Whatever the rule, apply it the same way to every flat and print it on the bill. The interest calculator shows the amount for any rate and delay.

Sinking fund, repair fund and non-occupancy charges

The Maharashtra model bye-laws set the sinking fund at a minimum of 0.25% of each flat's construction cost a year, and the repair and maintenance fund at 0.75%. Non-occupancy charges on rented flats are capped at 10% of the service charges, not of the whole bill. Other states leave more to each society's bylaws.

Is GST charged on maintenance?

Only when a flat's monthly charge is above ₹7,500 and the society's yearly turnover is above ₹20 lakh. Most small societies are under both limits and charge no GST. The GST on society maintenance guide has the rule, the exclusions and worked examples.

Keeping maintenance transparent

Most maintenance disputes are really about trust. Four habits prevent most of them:

• Show every head and the rate on the bill, not one total.
• Send a numbered receipt for every payment, cash included.
• Share a monthly statement of what came in and what went out, with the bills behind it.
• Apply late interest by rule, automatically, so nobody on the committee has to decide who gets let off.

That is the job Aangan does. It bills every flat, reminds and adds interest by your rule, takes payment by UPI straight into the society account, and sends receipts and a monthly report on WhatsApp. It is free for up to 20 flats. If you just need a receipt today, use the free maintenance receipt format.