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Urgent : Co-operative society

MUNAF PATEL (TAX CONSULTANT) (54 Points)

13 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 .....

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1 Replies

Sameer C. Patil (Compliance Professional) (44 Points)
Replied 02 September 2011

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