MULTI STATE CO-OPERATIVE SOCIETY

Multi State Co Operative Society:

 

General Definition:

Multi-State cooperatives are societies that have operations in more than one state. Such MSCSs are registered under the Multi-State Co-operative Societies Act 2002, and their regulation lies with the Central Registrar.

 

Income Tax:

Income tax is applicable as per the prevailing rates for the cooperatives.

The budget 2023-24 proposed new rates of taxes for newly registered cooperatives undertaking manufacturing activities.

 

GST:

Every Person is liable to register under the GST Act, 2017 if turnover exceeds Rs. 20 Lakhs subject to some other terms and conditions as defined in Section 22 of the CGST Act, 2017.

GST Rates on the products are given in annexure.

 

 

 

GST Rates on Products:

Sr No	Chapter/ Heading/ Sub-heading /Tarif Item	Description of Goods	Loose	Pre-packaged and labelled
45	Chapter 10	All goods i.e. cereals, put up in unit container and bearing a registered brand name, as detailed below-	0	5%
46	1001	Wheat and meslin	0	5%
47	1002	Rye	0	5%
48	1003	Barley	0	5%
49	1004	Oats	0	5%
50	1005	Maize(Corn)	0	5%
51	1006	Rice	0	5%
52	1007	Grain sorghum	0	5%
53	1008	buckwheat, millet, canary seeds	0	5%
54	1101	wheat flour and meslin flour	0	5%
55	1102	Cereal Flours other than of wheat or maslin i.e. maize flour, rye flour, etc.	0	5%
56	1103	Cereal groats, meal and pellets, including suji and dalia	0	5%
58	1105	Meal, poweder, flour, flakes, granuales and pellets of potatoes	0	5%
59	1106	Meal and powder of the dried leguminous vegetables of pulses, of sago or roots or dried makhana	0	5%

 

 

 

Income Tax Provisions:

 

Return of Income Tax

Every society is liable to file their income tax return as per the provisions of section 139.

 

Rate of Taxes:

Rate of Taxes as applicable to the Company.

Co Operative Societies

Sr No	Total Income	Rate of Tax
1	Upto Rs. 10000/-	10%
2	From Rs. 10001 to Rs. 20000/-	20%
3	Above Rs 30000/-	30%

 

Co Operative Societies – Budget Proposals 2023-24

Regular Society Rate                             – 22% plus Surcharge 10%

New Soct with Mfg Activities                  – 15% plus Surcharge 10%

 

Surcharge and Educations at applicable rates.

 

Terms and conditions for lower tax to new cooperatives:

 

Analysis of New Section – 115BAE

 

A Co-operative society in India, w.e.f. FY 2023-24, may opt tax @ 15% with following conditions:

Ø  Co Operative must be new set up or registrations; and

Ø  No split, reconstruction of existing society; and

Ø  Use new plant and machinery only; and

Ø  Engage only in manufacture / production / research of any article or thing,

Ø  (manufacturing does not include softwares, mining, conversion of marble block to slabs, bottling of gas into cylinder, book printing, film production, any such business govt may notify.)

Ø  Income from business other than manufacturing will be taxed @ 20% flat without allowing any decution or expenditure;

 

 

GST Act Provisions:

 

Section 22. Persons liable for registration.-

(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees:

¹[Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified:]

²[Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified:

Explanation.-For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.]

(2) Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day.

(3) Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.

(4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal.

Explanation.-For the purposes of this section,-

(i) the expression "aggregate turnover" shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;

(ii) the supply of goods, after completion of job work, by a registered job worker shall be treated as the supply of goods by the principal referred to in section 143, and the value of such goods shall not be included in the aggregate turnover of the registered job worker;

(iii) the expression "special category States" shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution ³[except the State of Jammu and Kashmir] ⁴[and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.]