Amul has workers as milk producers and the co-operative compensates the producers and supplies milk to its client. GMMF is a co-operative.
Is it possible to have similar co-operative - a workers co-operative in IT sector which takes freelancers and compensates freelancers based on their time contributed on set formula and provide tech services to overseas clients (so there is no service tax)?
a) Is Workers Co-Operative possible in India?
b) Does anyone have any draft agreement for registering one?
c) What are the tax implications on the co-operative income?
d) Will there be multiple levels of taxation on beneficiaries (its members)?
e) Can this co-operative invest in its own facilities (like Amul) and franchise out its products e.g Banking Sofware(like Amul Parlors)?
Drona
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Workers co-operative - how to structure it?
Replies (1)
The basic principles of a cooperative organization are among others the following
- Any person can apply for the membership of the Society without any discrimination. The membership is open for all.
- Service is the main motto and the profit is not the main concern in co-operative societies.
- Co-operative Society is an association of members and certain percentage profits earned by the society, as decided in the meeting of the General body will be distributed in the form of dividend to the members.
So, I don't think the IT professionals / freelancers can agree to the basic principles of a cooperative society.
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