Statutory records
As per the Bye-laws of
co-operative housing societies, following registers have to be maintained:
(Bye-law 143)
·
The Register of Members in “I” form
·
The List of Members in “J” form
·
Sinking Fund Register
·
Audit Rectification Register in ‘O’ form, prescribed
under the MCS rules 1961
·
Investment Register
·
Nomination Register
·
The Society / Members Loan Register / Mortgage
Register
·
The Property register and furniture, fixtures
and office equipment
The Society shall maintain
separate files for the specified items (bye-law 144)
Unless otherwise decided by the
Committee, it shall be the responsibility of the Secretary of the society to
maintain and keep up to date the account books, registers and other records
mentioned under the bye-laws Nos. 142 and 143.
Accounts and audit
Accounts: As per Rule 61 and 62
of MCSR, the annual statements of accounts are to be made in form N should be
prepared by the committee and be given to the auditor appointed by the
registrar within 15 days from their preparation. The balance sheet and profit
and loss account are required to be laid before the annual general meeting of
the society by the committee.
A copy of the balance sheet and
the profit and loss account to be laid before the AGM is to be fixed on the
notice board of the society atleast 14 days before the AGM.
Audit: under section 81
societies are required to arrange to get their accounts audited, at least once
in each co-operative year, by an auditor from the panel of auditors maintained
by the Registrar, or by a chartered accountant holding a certificate in
co-operative audit issued by the Institute of Chartered Accountants of India.
The Society shall appoint the
Statutory Auditor in its General Body Meeting from the panel of Auditors
approved by State Govt., and same Statutory Auditor shall not be appointed for
more than two consecutive years.(Model Bye-laws)
Structural audit
According to structural audit
policy and provisions under section 353 (B) of the Brihanmumbai Municipal
Corporation Act 1888, it is obligatory for the owner and occupants of buildings
more than 30 years old to have them
inspected by a qualified structural engineer registered with the BMC, get
repairs done as suggested by the engineer and submit the completion certificate
along with the structural fitness certificate to the municipal corporation.
Taxation of societies
There are no separate
provisions for assessment of a society under the Income Tax and the provisions
applicable to Associations of persons and trusts apply to a society.
Co-operative Housing Societies
are also mandatorily required to apply for PAN as per section 139(A) under
Income Tax Act, 1961
Co-operative societies are formed by a certain group of people having
same interest and same objective. To achieve the said objective, funds are
garnered in a single pool and used (including surplus) only for the benefit of
its exclusive members (and not non-members), hence co-operative societies are
within the ambit of “Principle of Mutuality” and hence its income from such is
fully exempt from tax. Other income however is chargeable to income tax.
Co-operative Housing Societies
earning business income qualify for a general deduction under section 80P(2)(c)
of Rs. 50000. This deduction can be claimed against business income and not
against interest or any other income.
Since most of the incomes of
societies can fall in tax net, it is mandatory to file income tax return within
the due date so provided u/s 139(1) of Income Tax Act, 1961. Since accounts of
all co-operative societies are subject to statutory audit provisions under
respective governing laws, therefore due date for filing return of income under
the Income-tax Act, 1961 is September 30.
Co-operative Housing Societies
are also mandatorily required to apply for TAN under Income Tax Act, 1961 in
prescribed Form and TDS returns are required to be filed by them within the due
dates prescribed.
