Please guide me on the following query relating to the audit & accounts of a society;
1. Whether a society registered in UP during the month of February 2010 is to prepare its Financial Statements for the Year 2009-10 even if any financial transaction has not taken place ?
2. If yes, whether audit of those Financial Statements is compulsory under any Law(if not registered under Section 12A of the Income Tax Act, 1961 ?
3. Whether the Financial Statements are to be prepared for the Financial Year 2010-11 even if the income earned by the society is less than the minimum amount not chargeable to tax ?
29 September 2011
Sec 43(h) of central cooperative societies act states that state govt can frame rules regarding books and account to prepare. For example Maharashtra housing societies requires to prepare general ledger, cash book, personal ledger, stock register, property register etc. The requirements regarding book and accounts resembles with sec 209 of companies act to far extent. So In my opinion... 1. Yes, although preparation of FS is not possible, but proper books are required to be maintained. 2.Sec 17 of cooperative societies act 1912 sates that registrar shall audit or cause to be audited by some person authorized by him to audit at least once in a year. 3. Yes, no correlation with amount of Income earned. Kindly let me know whether this solution has solved your query. Regards, CS Sumat Singhal
But this society is not a co-operative society registered under Cooperative Societies Act 1912. Its a society registered under the Societies Registration Act 1860. As far as the Societies Registration Act 1860 is concerned, each and every state is having some amendments or additions to the basic sections provided in the actual act. I am unable to find the exact wording of law regarding this situation or any law relating to this.
06 October 2011
Sec 43(h) of central cooperative societies act states that state govt can frame rules regarding books and account to prepare. For example Maharashtra housing societies requires to prepare general ledger, cash book, personal ledger, stock register, property register etc. The requirements regarding book and accounts resembles with sec 209 of companies act to far extent. So In my opinion... 1. Yes, although preparation of FS is not possible, but proper books are required to be maintained. 2.Sec 17 of cooperative societies act 1912 sates that registrar shall audit or cause to be audited by some person authorized by him to audit at least once in a year. 3. Yes, no correlation with amount of Income earned. So audit is mandatory in nature
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