Co-operative society

A Co-operative Society is a voluntary organization of individuals who are mostly workers and small producers. They are organized under joint management on democratic methods to improve their domestic and business conditions and capital collection. These societies work on the principle of mutual help.

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A co-operative society is governed by the Co-operative Societies Act, 1912, respective state’s Co-operative Societies Act or by the Multi-State Co-operative Societies Act, 2002.

Advantages of Co-operative societies

  • Equal voting rights for members
  • This structure encourages member contribution and shared responsibility
  • There is no limit on the number of members
  • Economical operations due to due to economies of scale benefits

Requirements of Co-operative societies

  • Minimum 10 members
  • Bye laws of the society

Registration of Co-operative societies

  • The prescribed application by respective state governments shall be duly filed with the Registrar of Co-operative Societies.
  • The application should be attached along with four copies of the proposed bye-laws of the co-operative society.
  • All the applicants should sign the application if the applicants are individuals.
  • If the applicant is a society by itself, then by a member duly authorized by such society.

Taxability of Co-operative society under Income tax Act, 1961

  • Specific deductions are available for Co-operative societies under sec 80P of Income Tax Act, 1961.
  • In analyzing the taxability of incomes of Co-operative societies Concept of Mutuality shall be taken into consideration.
  • Tax rates for Co-operative societies:

In the case of a multi-state co-operative society, it can work in more than one State as a matter of right, under the Act and the permission of the other State is not required to do its business.

Income and Tax Rate

IncomeTax rate
Income up to INR 10,00010 % of the total income
Income from INR 10,000 to INR 20,000Rs. 1,000 + 20 % of the amount by which the income exceeds INR 10,000
Income exceeds INR 20,000INR 3,000 + 30 % of the amount by which the income exceeds INR 20,000

Setting up business

Private Limited company
Proprietorship
DIN
PAN
EPF

ROC Compliance

LLP ROC Compliance
OPC ROC Compliance
Company ROC Compliance
Closure of Private company
Closure of LLP

Direct tax compliance

Filing income tax returns
Chapter VIA deductions
Capital gains taxation
Taxation of business
NRI income

Indirect tax compliance

GST returns and due dates
Input tax credit claim
GST Refund
GST TCS
GST TDS

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