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Urgent : Co-operative society

890 views 1 replies

MUNAF PATEL

TAX CONSULTANT

54 Points Joined June 2011

WHETHER PRESIDENT OR SECRETERY OF THE CO-OPERATIVE SOCIETY CAN RECEIVE REMUNERATION/SALARY/SHARE IN PROFIT ?

The Society is registered under Gujarat Cooperative Societies Act. It is a housing society created by developers. All the Flats & Shops are sold but by mistake balance sheet of the society shown Profit balance of1050200/-. All the receipts from buyers and payments to suppliers & contractors completed. Only difference between Sales & Expenses is 1050200/- and it is lying under "Reserve & Surplus" . The president and Secretary intend to receive this amount as Salary or Remuneration. Can they do this ??

Please Suggest .....

Replies (1)

Sameer C. Patil

Compliance Professional

44 Points Joined June 2009

Hi,

With regard to your query, as per the rules prevailing in Maharashtra, the office bearers of a CHS can be paid remuneration / salary and that too within the prescribed limits set under the Act/Rules, but there is no provision of sharing the profits only by the office-bearers. Logically, similar rules with slight deviation must be applicable in Gujarat also. Kindly share, if you have already received clarification on the issue.

Regards,

Sameer C. Patil