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CO-OPERATIVE SOCIETY

 

Question 1 (co-operative society) (ID 01)

XYZ Consumer Co-operative Society furnishes the following particular of its​​ income in respect of year. You are required to work out the taxable income of the Co-operative Society:

 

Rs.

Rs.

Income from business

 

2,50,000

Interest on deposits with bank

 

10,000

Dividend on investments:

 

 

-Investments in share of other​​ Co-operative societies

4,000

 

-Other investments

4,000

8,000

Income from letting of godowns for storage of commodities

 

20,000

Give reason for your answer.

 

Question 2 (Revision ​​ / Home work) ​​ (co-operative society) (ID 02)

Calcutta Suburban​​ Co-operative Society is engaged in processing agricultural produce of its members without the aid of power, and its marketing, furnish the following particulars:

  • Income from processing of agricultural produce Rs. 17,000

  • Income from marketing agricultural produce Rs. 3,000

  • Dividends from another co-operative society Rs. 55,000

  • Income from letting of godowns Rs. 10,000;​​ 

  • Income from agency business Rs. 85,000.

Determine its total income for the year.

 

Question 3 (co-operative society) (ID 03)

The total income​​ of a co-operative society (not being a consumers co-operative society) for financial year under various heads is as under:

 

Rs.

Banking business

10,000

Income from cottage industry (product manufactured involves 4 process and last process is​​ subcontracted to persons who are not the members of society.)​​ 

15,000

Marketing of agricultural produce grown by members (some of the lorrys have been owned by society and they are used for marketing of agricultural produce, however when there was slackness in work the lorries were rented out, such income of Rs. 2,300 is included under this head.)

15,000

Income from purchase and sale of agricultural Implements to members

12,000

Profit and gains of business

75,000

Interest and dividend from other co-operative society

12,000

Collective disposal of labour

11,000

Income from house property

50,000

Compute taxable income of the co-operative society.

 

 

Question 4 (Revision / Home work) (co-operative society) (ID 04)

PQR Co-operative Bank, a co-operative​​ society, having its area of operation confined to Gubbi Takuk and the principal object of which is to provide for long term credit for agricultural and rural development activities, has received the following amounts during the year:

  • Interest amounting to​​ Rs. 1,00,000 from its members on loans advanced to them.

  • Interest amounting to Rs. 1,50,000 on deposits with other co-operative societies.

  • Rent amounting to Rs. 2,00,000 from letting out its godowns for storage of commodities.

PQR Co-operative Bank seeks your advise in the matter of taxability of the above amounts and the eligibility for deduction, if any, in respect thereof.

 

Question 5 (Revision / Home work) (co-operative society) (ID 05)

Samode Food Processing co-operative Society engaged in processing without the aid of power of the agricultural produce of its members, in carrying out activities of marketing of agricultural produce, in agency business and others, furnishes the following particulars of its income for the year.

 

Rs.

Income from processing​​ of the produce of members

50,000

Income from marketing activities

30,000

Income from letting of building used as godowns

96,000

Dividend from another Co-operative Society​​ 

45,000

Collective disposal of Labour of its members

25,000

Income from agency​​ business

75,000

Interest on deposits from another Cooperative Society

15,000

Compute the income chargeable to tax.

 

Question 6 (co-operative society) (Revision ​​ / Home work) (ID 06)

The assessee, a co-operative society, which was engaged in the activity​​ of collecting milk from primary milk societies, processing the milk and supplying the milk and other products to the State level federal co-operative society claimed deduction under section ​​ 80P(2)(b) on the ground that it had to be considered as a primary​​ society engaged in supply of milk. The Assessing Officer held that the assessee society was a federal society collecting milk from various primary societies and supplying it to the State level apex society after processing the milk and thus the deduction​​ is not available. You are required to answer whether the society will be eligible for the deduction under section 80 P for income of Rs. 625,000.

 

 

Producer Company

 

Question (Producer Company) (ID 21)

 

Company P a producer company as per 581A of the companies act, having turn over of 46 crore has the following incomes. You are required to compute the tax liability of the company.

 

(a)​​ the marketing of agricultural produce grown by the members; - 10 Lakhs

(b)​​ the purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to the customers in Gujarat who are not the member of company; - 23 Lakhs

(c)​​ the processing of the agricultural produce of the members; - 17 Lakhs

(d) Interest on Bank​​ deposits – 4 lakhs

 

Ignore the provision of MAT.