• COMPLINACE FOR COOPERATIVE HOUSING SOCIETY

    We receive various questions regarding compliance to be fulfilled by housing society. Hence we thought lets compile all compliance matter for your easy understanding.

    standard blog post with image

    From above picture it is clear that Hosing society need to comply with –

    • Maintenance of Accounts Register

    • Maintenance of Statutory Register

    • Audit

    • Income Tax

    • TDS

    • Service Tax

    Maintenance of Accounts Register

    Society need to keep following book of accounts as per bye law –

    • Cash Register

    • Bank Register

    • Journal Register

    • Income & Expenses Report

    • Receipt & Payment Report

    • Balance sheet

    • Investment Register

    • Fixed Asset Register

    Maintenance of Statutory Register

    Society should keep following statutory registers. –

    • I Register

    • J Register

    • Share Register

    • Nomination Register

    • Mortgage Register

    • Committee Meeting Minute Book

    • General body Meeting Minute Book

    • Tenant Register

    • Vehicle Register

    • Inventory Register

    Audit

    According to section of Maharashtra Cooperative Society Act, Every Society should get it accounts audited from Panel of Auditor. Panel of Auditor are approved by State government having required qualification and experience. Following are due dates to be remember in this regard –

    • Finalization of Acts – 15th May

    • Accounts to be handed over for Audit -1st June

    • Audit Completion: 31st July

    • Audit Report Upload – 31st Aug

    • AGM Date – 30th Sept.

    • Mandatory Annual Return by Society – by 30th Sept

    • Mandatory Return by Society About Auditor Appointment – One month from AGM or 31st Oct

    • Online Audit Order Generation by Auditor – 31st Oct.

    • Audit Rectification Report by Society: 3 months from the date of submission of report by auditor.

    • Rectification Report Upload by Auditor through Audit login: Once received from Society

    Auditor will verify registers maintained by society hence committee members should maintain registers mentioned above.

    Income Tax

    Cooperative Society is taxable entity under income tax act, 1961 and Cooperative society is treated as Association of person (AOP) under the act. As per section 139 of income tax act, person whose total income exceeds the limit are required to file income tax return mandatorily. In case of society, income tax slab is started from Rs.1 to 10000. In other words, if society earn Rs.1 taxable income also then it is mandatory for them to comply with income tax procedure. For more details on Income tax you can view our blog on Income tax

    TDS (Tax Deduction At Source)

    TDS is Tax deducted at source. It is deducted while making payment to vendors.Due date for Monthly payment is 7th of next month. TDS return is filled on quarterly basis. Due date for return filing is -

    Quarter Last Date of Filing
    1st Quarter 31st July
    2nd Quarter 31st Oct
    3rd Quarter 31st Jan
    4th Quarter 31st May
    For more details on TDS you can view our blog on TDS

    Service Tax

    Society need to comply with service tax procedure if they have collection of Rs.5000 or more per member per month. Following contribution are excluded in calculation of Rs.5000 limit –

    • Sinking Fund

    • Repair Fund

    • Water Charges (except for common use)

    • Municipal Tax/Property Tax

    • Late fee

    • Non-Occupancy charges

    • Lease rent

    • NA Tax

    • Admission/Entrance fee

    • Transfer fee

    • Deposits

    In other words, Rs.5000 limit includes service/Maintenance charge, Electricity charges, Share transfer fee, Car parking charges, Insurance contribution, Non-member collection like rent. Service tax liability will be reduced from service tax paid to service provider like security vendor, Housing keeping vendor etc. Net service tax liability is to be paid.

    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. Due date of service tax is –

    • Service tax is payable on monthly basis, i. e. by 5th of the next month or 6th in case of e –payment.

    • Service tax returns to be filed on half yearly basis in the following manner :

      • For the period from 1st April to 30th September – by 25th October

      • For the period from 1st October to 30th March – by 25th April.

    If your society is liable for service tax act then it is mandatory to get registration under service tax and comply with above due dates.

    We believe that you found this write-up helpful. If you have any query of require any further information then please connect with us on info@esanchalak.com. We will be glad to help you.