C.e. g.e. no. 61 - 287/88 read more at: http://www.caclubin


This query is : Resolved 

(Querist)
30 May 2014 Sir, I have been asked a question but couldn't get clarification from anyone. Query is : The company is operating under a Tamil Nadu women's society and hence has exemptions. They are trying start a second unit in a Kerala rural industrial area. Their question is: Can they start that new/second Kerala unit under the same women's society registered in TN and avail the same benefits/exclusions. What are the complications in doing this way. THANKS IN ADVANCE.

30 May 2014 The exemptions available under TN may not be applicable in other states if the exemptions are granted by TN state. Would you mind enlisting whether or not the exemptions are given by /State Govt or Central Govt.

Rupesh Jain (Expert)
30 May 2014 pls check in your society law or in by law permit to work in another state or not. secondly state taxes are different then you have to take new registration for new state and benefit of state govt. depend on kerala govt law. you may contact to lawer who know the kerala govt act/rules in this regard.

Siva Kannan (Querist)
30 May 2014 Thanks a lot Amol. To answer your question, EXEMPTIONS are given by CENTRAL government under General Exemption 10. Notification 88/88. The issue (not clearly written) is, "Can TN society under operate in another state and avail exemptions given by Central Govt. (Law doesn't clearly state about this. that is..Like "Society has to be registered under state or so and so to avail exemptions"

Siva Kannan (Querist)
30 May 2014 Hello Rupesh, TN Society law doesn't say if we can or cannot. We're trying to use the same Society to operate in Kerala and ready to pay taxes that Kerala govt requires

Siva Kannan (Querist)
30 May 2014 Changing the status to "Open"

30 May 2014 every society is given "area of operation" If the society wants to do the activities beyond its area of operations,then it needs to get the sanction. These are then regarded as Multi State societies. (Now a question may arise...if the exemption given by Central Govt is automatically withdrawn if the societyextends its area of operation without taking permission to do so???????)

Siva Kannan (Querist)
30 May 2014 Amol, I looked and dont see clearly defined area of operation under established women's society which makes it confusing how far you can reach out of state. Also I think they have abolished multi state societies.

Rupesh Jain (Expert)
31 May 2014 r/sir

when a society registered then in its law / by law mention in what state they work. due to society work under the state govt act. not the central govt act. and in every state have diff.-2 compulsory clause for registered the society under their state act.

31 May 2014 Please get the bye laws registered with the sub registrar of the societies, This dates back to the registrqtion of your sopciety with TN govt. None the less.....u need to take a registration under multistate societies registration act. (As I hinted earlier...... Income tax will have a little concern whether or not income is derived from operations in TN or elsewhere......)


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