Co-op Hsg.Soc.

This query is : Resolved

Prakash Jasani (Querist)
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08 November 2008 Dear Experts,

What is the criteria of audit of co-op hsg.soc.

If audit is applicable then which form we have to submitted in income tax dept.& for preparation of computation of income from where i will get all the information.

I need all the information regarding co-op hsg.soc. from starting to end.

Reply ASAP if possible

Regards,
Prakash Jasani

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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10 November 2008 Section 81(1) has been sub-divided as 81(1)(a) and 81(1)(b). According to Section 81(1)(a) the Registrar has the power to appoint an auditor by an order, only in case of such societies, which have been given financial assistance including guarantee by the State Government , Govt. Undertakings or Financial Institutions from time to time.
Section 81(1)(b) of the act provides that the societies other than the societies referred to in clause (a) shall arrange to get their accounts audited, at least once in each co-operative year, by an auditor form the panel of auditors maintained by the Registrar, or by a Chartered Accountant holding a certificate in Co-operative Audit issued by the Institute of Chartered Accountants of India.

Thus on going through the Section 81(1)(b) it seems that a co-operative society not coming with the ambit of Section 81(1)(a) can appoint its own auditors at Annual General Meeting by passing a resolution. Regarding the qualifications of an auditor the Section states that he should be a person, whose name appears on the panel of auditors maintained by the Registrar of Co-operative Societies. Alternatively the section states that the society may appoint a Chartered Accountant holding a certificate in co-operative audit issued by the Institute of Chartered Accountants of India.

It may be stated here that the Institute of Chartered Accountants of India does not issue a certificate for co-operative audit. Every qualified Chartered Accountant is competent to conduct any audit. The fact is that the Western India Regional Council of the Institute of Chartered Accountants of India conducts every year a course – Study Course – in Co-operative Audit, and issues a certificate for having completed the course to a Chartered Accountant whom attends the course. Applications of such Chartered Accountants who have completed the course were being forwarded upto now by the western Indian Regional of the registrar of Co-operative Societies Maharashtra State., On reading Section 81(1)(b) as amended it seems that a Chartered Accountant holding a certificate of completion of course from Western India regional Council could be appointed as an auditor by the Society without his name being enrolled on the Panel.

The Section is further appended by a provision that every third year the accounts of the society shall be audited by the Registrar, through a person authorized by him.

On reading of the Section 81(1)(b) it could be that the duration of auditors under this Section is only two years since in the thirds year the register will point in auditor The section is also appended by the a further proviso that the registrar for the reasons recorded in writing may appoint an auditor to audit the accounts of any society at any time.