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SOCIETIES
SIMON RODRIGUES
INTRODUCTION
A Co-Operative Society is a taxable entity under the
Income Tax Act, 1961. A Cooperative Society under the
Act is to be treated as an Association of Persons (AOP),
which is included in the definition of 'person' under the
Income Tax Act, 1961.
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) Surcharge - 10% of the Income Tax, where total taxable income is more than Rs. 1
crore.
b) Education cess - 2% of income-tax.
c) Secondary and higher education cess - 1% of income-tax.
d) Total Cess = 3% of Income-Tax.
a) Primary Agro Credit Society is one whose primary object is providing financial
accommodation to its members for agricultural purposes or purposes connected
with agricultural activities, including marketing of crops, no other co-op society
being its member.
b) Primary co-op agro & rural dev. bank confined to a taluka and providing long
term credit for agro and rural dev. activities
Agriculture-Related Activities:
(i) Purchase of agricultural implements, seeds, livestock or other articles intended for
agriculture for the purpose of supplying them to its members
(ii) The collective disposal of:-
Once the receipt exceeds the exemption limit, Service Tax is payable
after deducting first Rs. 10 Lakhs in the subsequent year and
thereafter, Service Tax is applicable every year without any
exemption.
Service tax is payable on billing basis, i.e. even if a member does not
pay the bill amount, Service Tax will have to be paid by the society.