How to calculate interest on society maintenance charges

The Member shall be required to pay their maintenance charges on time, if a Member do not pay the maintenance charges on time, Society can charge late payment fee on simple interest at 21% per annum as per Bye- Law No 71, or at such lower rate whatever fixed by the General Body, on the outstanding dues, from the date the amount was due as prescribed under Bye-Law No. 69, till full and final payment by the Member.

We have observed that many housing society do not follow the Bye-Law for for example some society charges fixed amount like Rs 50 or Rs 100 on late payment which is wrong. Suppose a flat monthly maintenance charge is Rs 1500 and he paid Rs 1400 , so on balance amount Rs 100 and late payment charge Rs 100 is correct?

Reason behind that committee not aware of MCS Act, rule and Bye-Law, however this is also responsibility of their Auditor / CA / Accountants to suggest the society how Interest Charges in Housing Society Maintenance Due as per Bye-Law.

Let us take a example

Bill Date: 01-01-2021 

Bill Due Date : 15-01-2021

Monthly Maintenance Charge : 1200

Rate of Interest : 21% Annual

Case 1 : Maintenance Charges Paid After due date

Member has paid maintenance charges on 25-01-2021 In this case payment has delay by 10 days. Interest on maintenance due will be calculated as given below :

Interest on dues = 1200 * (21/100) * (10/365)

                          =  6.8 

          = 7 (Rounded Off)

So, Feb 2021 maintenance bill will come 1200 + 7 = 1207

Case 2 : Current month maintenance charge not paid

If is he has not paid maintenance till next month bill, in this case his payment delay by 15 days. Interest on Cooperative Housing Society Dues will be as given below :

 Interest on dues = 1200 * (21/100) * (15/365)

                           =  10.3

   = 10 (Rounded Off)

So, Feb 2021 maintenance bill will come 1200 + 10 = 1210

Case 3: Partial Payment

Now suppose member has paid on Rs 600 on / before 15-01-2021 , so pending amount is Rs 600

Interest on dues = 600 * (21/100) * (15/365)

                          =  5.1

  = 5 (Rounded Off)

So, Feb 2021 maintenance bill will come 1200 + 5 = 1205

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