Many societies impose NOC charges for society apartments that are rented out. These charges are added to monthly or quarterly invoices and are a common part of housing society accounting. Here’s a quick FAQ to clarify how NOC charges in housing societies work.
1. How is NOC calculated? Is it based on rental income?
No, NOC is not directly linked to the rent collected by the owner. The Maharashtra government’s 2001 regulations stated that NOC should be a percentage of service charges/maintenance charges, not rent. However, following a legal challenge by Mont Blanc CHS, an interim court ruling allowed societies to charge up to 10% of the rent as NOC. Ultimately, the General Body Meeting (GBM) decides the exact structure of NOC in each society.
2. How much NOC can a society charge?
As per model by-laws, NOC charges for societies must be decided by the GBM. However, state regulations cap it at 10% of the service/maintenance charges. Any higher percentage could be challenged legally.
3. How to manage NOC charges in housing society accounts?
Calculating and collecting NOC efficiently requires accurate accounting and compliance tracking. Instead of manual calculations, societies can simplify the process with automated society management software like Mygate.
Why use Mygate?
- Automated invoicing & compliance tracking
- Seamless payment collection & defaulter alerts
- Transparent accounting for GBM approvals
And much more. To explore click (the accounting page link )
Ensure hassle-free NOC charges in housing society management with Mygate’s integrated financial tools.
