Co-Operative Society Audit was originally need to be conducted to ascertaining whether the person responsible maintaining accounting record and documents had properly accounted for all receipts and payments as per accounting standards. The primary object of our Audit is to examination of each transaction of receipt and payment, the verification of the financial of an Co-Operative Society. Our main object of audit is to find out whether the accounts of a particular concern exhibits a true and fair view of the financial State of affairs , to detect errors, fraud etc. to ensure financial discipline. Audit is, therefore, an examination of accounting records undertaken with a view to establish whether they correctly and completely reflect the transactions to which they relate.
Co-operative Society Audit
Types of Co-Operative Society Audit
- Annual audit or statutory audit – A “periodical” or “annual” audit which is compulsory under law, is known as “statutory audit” and is generally carried out once a year.
- Internal Audit – to guide the management for any rectification or compliance required before the statutory audit and the internal auditors submit their reports to the Board.
- Re-audit – if it appears to the Registrar, on an application by society or otherwise, it is necessary or expedient to re-audit, Registrar may by order provide for such re-audit.
- Special audit – Special audit is applicable only on the request of Reserve Bank of India. Audit Report need to submit to RBI
- Cost Audit – The Cost audit of certain types of societies shall be directed by the State Government under section 81 (2A).
Rate of Income Tax on Co-operative Society
- Income up to ` 10,000 = 10%
- Income ` 10,001 up to ` 20,000 = 20% of income exceeding 10,000 + 1,000
- Income ` 20,001 onwards = 30% of income exceeding 20,000 + 3,000
Applicability of PAN & TAN to Co-operative Society
- A cooperative society has to get PAN, TAN etc like any other form of business.
- If the society has to deduct income tax it must obtain TAN number. The society is also bound by provisions of TAN and filing of return of TDS.