FAQ on Taxation of Cooperative Society

The taxation of cooperative society depends on the nature of cooperative society. The frequently asked question i.e FAQ on taxation of cooperative society has been prepared to make people aware , specially those running and administrating the cooperative society about the taxation laws affecting the society.
Cooperative societies may be governed by the respective State cooperative societies Act or by the Multi-State Cooperative Societies Act, 2002. The societies whose main objective is to serve the interests of its members in a particular State, are governed by the Cooperative Societies Act of that particular State. While, a Society whose main objectives is to serve the interests of its members in more than one State, are governed by the Multi-State Cooperative Societies Act, 2002.

According to the Cooperative Societies Act of each State, a cooperative society registered within any State under the law of that State is not allowed to operate in other States without the permission of the Government or Registrar of Cooperative Societies of that State. In case of multi-State cooperative society, it can operate in more than one State as a matter of right, under the Act and no permission of any State is required to do its business.
Even though, for taxation purposes, the status of a cooperative society is to be taken as an Association of Persons, the section 67A and section 86 of the Act have been excluded from application to the members of society.

A Cooperative Society is taxed at rates, which are different from those applicable to an AOP. Under the annual Finance Act , though individuals, Hindu undivided family, AOP or body of individuals, whether incorporated or not, or every artificial juridical person referred to in the Income Tax Act, are chargeable at rates prescribed in paragraph A, of the Finance act. A Cooperative society is chargeable to tax as per rates prescribed under paragraph B of Part1 of the first schedule to the annual Finance Act.

You can read the detailed faq on taxation of cooperative society on the article http://taxworry.com/cooperative-society-taxation-ultimate-guide/ wherein every question is explained with case laws from Tribunals and High courts on various issues like taxation of cooperative societies,tax audit of cooperative society,
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Видео FAQ on Taxation of Cooperative Society канала Prashant Thakur