Apartment owners association accouting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2013 Dear experts

What is the accounting treatment for "Apartment Owners welfare Association".

The association will collect the money from Apartment owners and spends for Water Charges, E.city Charges and Other Maintenance charges.

At the end of the year they may have the surplus amount, is that amount is taxable ?
(P & L Account or Income and Expenditure Account)

And they are having Savings account on association Name they and they are receiving bank interest for that,what is the Tax Rate for that Interest portion.

Kindly help.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

31 May 2013 In this case the law of mutuality will apply and accordingly you have to raise the bills under various heads such as Corporation tax, electric, water, Maintenance, etc. and the amount spent under various heads to be debited when paid or on accrual basis. Both are to be accounted for in the P & L A/c. In case you receive premium on transfer of flats then the amount may be treated as capital receipt