Advantages of co operative, co operative business, that co operative, “corporations”

IMPACT OF GST ON HOUSING CO-OPERATIVES

IMPACT HOUSING COOPERATIVE Co-operative Housing Societies area unit just a assembling and experience mechanism like just in case of capital levy, water charges, common space repairs and maintenance etc.

It may be contended that no activity is distributed by a society for its members.

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IMPACT HOUSING COOPERATIVE There could also be varied service suppliers providing service to the society that is that the legal owner of the building together with that of common areas, for e.g. repairs service suppliers, maintenance service suppliers, security agencies etc.

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IMPACT HOUSING COOPERATIVE Thus, the society is receiver of service and not supplier of service.

If a member’s flat or workplace premises need repairs, a similar is obtained directly by the member and therefore the society is not concerned in provision of that service.

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IMPACT HOUSING COOPERATIVE More no thought is flowing from the members to the society except allocation and assortment of expense.

Any such payments while not quid-proquo of a service cannot be at risk of tax.

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IMPACT HOUSING COOPERATIVE Thus, it will be argued that even underneath the new dispensation, service tax is not applicable just in case of a co-operative society once, any activity is administered for no thought and therefore the same would be continued underneath the GST Act.

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SERVICE TAX ON COOPERATIVES Service tax on co-operative societies could be a contentious issue.

It works on mutuality principles because the operation of the society is for the members and by the members.

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SERVICE TAX ON COOPERATIVES during a co-operative housing society, the land and building belongs to the society and therefore the members by virtue of their membership of the society have right to occupy, fancy and transfer their flats, subject to the prevailing rules and rules and bye-laws of the society that area unit needed to be approved by the required authorities underneath the law.

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SERVICE TAX ON COOPERATIVES A co-operative housing society could be a collective mechanism whereby it build payments of land tax and like payment to the municipal corporation and alternative Government bodies, incur some expense for commonweal and portion and collect the expense in type of sure charges from the members on some basis or as per the resolutions passed within the General Body conferences.

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SERVICE TAX ON COOPERATIVES Such collections area unit typically within the sort of reimbursements.

A number of the functions of co-operative housing society area unit statutory functions like transfer of shares of the members with the underlined interest within the property (flats).

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